Microsoft Expands Cloud Presence in Hyderabad with AI-Ready Region

Microsoft has expanded its cloud and AI presence in India by launching a new region in Hyderabad. The company's fourth Indian cloud region, known as the India South Central facility, went live on Monday. Despite this significant move, Microsoft shares were essentially flat.

The new region brings together three availability zones with Azure and Microsoft Foundry services, providing a base for enterprise workloads and AI deployment in one of Microsoft's fastest-growing strategic markets. Hyderabad is being pitched as infrastructure not just for India but for South Asia and other developing markets.

Microsoft has already announced several high-profile customers for the new region, including Adani Group, Bajaj Finserv, HDFC Bank, and PB Pay. However, the next test for Microsoft will be utilization: turning geographic coverage into enough enterprise and AI demand to justify the significant investment going into the site.

One notable aspect of the new facility is its use of zero-water cooling, which addresses a major local infrastructure constraint. The valuation picture also remains interesting, with Microsoft trading 15.83% below its estimated $586.29 GF Value.