Microsoft Expands into Hyderabad with New Cloud Region
Microsoft has launched its new three-zone India South Central cloud region in Hyderabad, marking a significant step towards building local computing capacity for Indian businesses. The region is part of Microsoft's $20.5 billion commitment to expanding its presence in India.
The infrastructure is designed to support sovereign-cloud requirements and Indian data residency while using effectively zero water for cooling, which matters given the increasing demand from Indian companies for AI performance without sending sensitive workloads outside the country.
Microsoft's new region will enable customers to run mission-critical AI workloads with greater flexibility and lower dependence on distant regions. The company has not disclosed the megawatt capacity or revenue target for the Hyderabad region, but utilization is likely to be a key metric for investors to watch.
The market price of Microsoft shares currently sits at $496.905, 15.28% below GuruFocus' intrinsic-value benchmark of $586.56. This valuation picture adds an interesting counterweight to the company's ongoing investments in India's growing cloud and AI infrastructure market.