Microsoft has switched on its fourth cloud region in India, choosing Hyderabad as the site for its largest hyperscale cloud facility in the country. The general availability of the India South Central region was announced on August 6, 2026, giving the company the biggest cloud footprint of any provider in India.
A New Hub Joins Three Existing Regions
The Hyderabad facility joins Microsoft’s existing cloud regions in Pune (Central India), Chennai (South India), and Mumbai (West India). Built with three physically separated availability zones, the new region is designed to support mission-critical workloads with high resilience, meeting India’s regulatory and seismic-zone requirements.
Part Of A $20.5 Billion India Commitment
The launch is the first major capacity delivery under Microsoft’s broader $20.5 billion investment pledge for India’s digital and AI infrastructure. That figure combines a $3 billion commitment made in January 2025 with a larger $17.5 billion commitment announced in December 2025.
Puneet Chandok, President of Microsoft India and South Asia, said trusted digital infrastructure located close to customers’ operations is essential for creating value through artificial intelligence (AI).
Several major Indian enterprises have already signed on to use the new region, including Adani Group, HDFC Bank, Bajaj Finserv, PB Pay, Air India, Apollo Hospitals, Meesho, PhysicsWallah, Fractal, and Kore.ai. HDFC Bank reportedly plans to use the Hyderabad region as a disaster-recovery site.
Why This Matters For India’s AI Ambitions
Microsoft said Azure, its cloud computing platform, has posted double-digit revenue growth in India over each of the past two years. The company also operates two additional data centres in India through a partnership with Mukesh Ambani-led Jio.
Research firm IDC forecasts that India’s public cloud services market will reach $45.7 billion by 2030, growing at a compound annual rate of 22.2 per cent, with AI-related spending expanding at roughly twice that pace.
