Microsoft Expands Cloud Presence in Hyderabad Amid Growing AI Demand

Microsoft has expanded its data center footprint in India by launching a new cloud region in Hyderabad. The company said this is part of its efforts to meet growing demand for artificial intelligence and cloud services in the country. The new India South Central region includes three Availability Zones designed to support large-scale, mission-critical workloads.

Microsoft claims that its infrastructure complies with India's regulatory requirements and local seismic standards. This move is part of Microsoft's broader efforts to expand its presence in India, where it operates four cloud regions - Pune, Chennai, Mumbai, and Hyderabad - and has partnered with Jio to operate two data centers.

The company said the new region will give customers more options to run eligible cloud services and store workloads within India, meeting security, compliance, governance, and data residency requirements. Adani Group, Bajaj Finserv, HDFC Bank, and PB Pay are among the companies that received early access to the Hyderabad region.

Microsoft said its Azure business has recorded strong double-digit growth in India over the past two years. The company expects the facility to support businesses seeking to modernize older systems, build digital services, and deploy AI applications. This expansion follows Microsoft's previous investment commitments of $3 billion in January 2025 and an additional $17.5 billion pledged in December 2025.