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Microsoft Launches Fourth India Cloud Region in Hyderabad to Accelerate AI Adoption

The Hyderabad facility adds three availability zones and is designed to support mission-critical workloads as Microsoft expands its India cloud and AI push.

  • On Thursday, Microsoft launched its 'India South Central' cloud region in Hyderabad, establishing the company's fourth facility in India and its largest hyperscale cloud presence in the country.
  • This expansion follows Microsoft's $20.5 billion investment commitment to India's digital infrastructure, aimed at creating a foundation for 'scalable and sovereign-ready AI-powered' services amid rising enterprise demand.
  • Featuring three availability zones and zero-water cooling technology, the facility complements existing regions in Pune, Chennai, and Mumbai to support mission-critical workloads with high resilience.
  • Microsoft reports strong demand from major Indian enterprises including Adani Group, HDFC Bank, Bajaj Finserv, and PB Pay. Puneet Chandok, President, Microsoft India and South Asia, said the investment helps India "set the pace for the world."
  • Research firm IDC forecasts India's public cloud services market will reach $45.7 billion by 2030, expanding at a 22.2% compound annual growth rate, with AI-related spending growing at roughly twice that pace.
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TFD broke the news on Thursday, August 6, 2026.
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