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Microsoft Launches India South Central Cloud Region in Hyderabad

The Hyderabad region adds three availability zones and zero-water cooling as Microsoft expands capacity for India’s growing AI demand.

  • On Monday, Microsoft launched its India South Central cloud region in Hyderabad, joining existing facilities in Pune, Chennai, and Mumbai as part of a $20.5 billion investment commitment to strengthen cloud and AI infrastructure.
  • Microsoft India and South Asia President Puneet Chandok stated that India generates 20% of global data but possesses only 3% of data capacity, creating urgent demand for regional infrastructure to support mission-critical AI workloads.
  • The Hyderabad facility utilizes an innovative zero-water cooling system using air-cooled chillers instead of traditional water-based methods. Microsoft incorporated renewable energy procurement and groundwater recharge measures for sustainable operations.
  • IDC forecasts India's public cloud services spending will reach $45.7 billion by 2030, with AI growth accelerating faster. Microsoft positions the expansion as a catalyst for local enterprise development and job creation across the region.
  • Microsoft Vice Chair and President Brad Smith said the region provides organisations in India and Asia greater capacity and choice. The company envisions India becoming a central AI infrastructure hub for the Global South by 2035.
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Moneycontrol broke the news in Mumbai, India on Monday, September 21, 2026.
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