Microsoft Launches Fourth India Cloud Region in Hyderabad
Microsoft has formally launched its fourth cloud region in India, India South Central, in Hyderabad, marking a major expansion of the company’s digital and artificial intelligence infrastructure in the country.
The new cloud region became generally available on August 6 and is part of Microsoft’s $20.5 billion investment commitment in India. The facility is designed to provide businesses with greater cloud capacity, resilience and access to advanced AI infrastructure.
A key feature of the Hyderabad facility is its effectively zero-water cooling system. Instead of traditional water-based cooling, the data centre uses air-cooled chillers, helping reduce water consumption in data-centre operations.
Microsoft India and South Asia President Puneet Chandok said India’s data-centre capacity is expected to rise from around 2 GW to 6–7 GW by 2035, supported by more than $100 billion in investments. He also highlighted India’s potential to become an AI infrastructure hub for Asia and the Global South.
Microsoft Vice Chair and President Brad Smith said the new region will give organisations in India and Asia greater capacity, resilience and choice.
India’s cloud and AI market is expanding rapidly. Public cloud services spending is projected to reach $45.7 billion by 2030, growing at an annual rate of 22.2%, while AI spending is expected to grow at roughly twice that pace, according to IDC.
The Hyderabad launch further strengthens India’s position as a growing destination for cloud computing, data centres and AI infrastructure.