Microsoft Expands Cloud Dominance in India with Hyderabad Data Center

Microsoft has expanded its presence in India's cloud market by opening its largest data center yet in Hyderabad, dubbed the 'India South Central' region. This is Microsoft's fourth data center hub in India, following locations in Pune, Chennai, and Mumbai.

The new facility will provide a boost to Azure users in the country, particularly those with large pools of sensitive data such as Adani Group and HDFC Bank, which are among the early customers. By hosting servers within the country, cloud services can feel faster, and companies can better comply with data residency rules that limit where certain information can be stored or processed.

Microsoft is framing this expansion as part of its broader $20.5 billion investment in India, where Azure revenue has grown at a double-digit pace for the past two years. However, competition in the market remains intense, with Alphabet and Amazon also expanding their data centers in the region.