Microsoft opens its fourth cloud region in Hyderabad, signalling a major investment in India’s digital and AI ecosystem, with Telangana aiming to become India’s innovation hub through extensive infrastructure development and community engagement.
Microsoft has opened its India South Central cloud region in Hyderabad, giving the company its fourth cloud region in India and widening its infrastructure footprint for cloud and AI workloads. The launch places Telangana more firmly within Microsoft’s regional strategy, with the company describing Hyderabad as a strategic base for Asia and the Global South. Local reports said the site is built around a resilient three-zone architecture and is intended to support rising demand for digital infrastructure as enterprises expand their use of AI.
At the inauguration, Telangana IT minister D. Sridhar Babu said the region would strengthen the state’s ambition to become India’s innovation capital. He linked the Microsoft investment to Telangana’s wider plan to reach 5 GW of datacentre capacity by 2029 and attract about $30 billion in investment. According to coverage by The Times of India and The New Indian Express, the minister framed the project as part of a broader effort to bring together infrastructure, talent, academia and enterprise in one technology cluster.
Rajiv Kumar, managing director and president of Microsoft India Development Centre, said Hyderabad has been central to Microsoft’s work in India for more than 20 years. In comments reported by VAR India, he said the company’s focus goes beyond infrastructure and includes skills development, entrepreneurship, workforce training and sustainability. He said Microsoft is working with local partners on groundwater recharge, rainwater harvesting and watershed resilience to support long-term growth in the region.
Microsoft India and South Asia president Puneet Chandok said the company is moving from intention to execution on India’s AI opportunity. He described the Hyderabad region as a foundation for what he called the next generation of Frontier Firms, or businesses built to use AI more deeply across operations and growth. According to Datacenter Dynamics, the new region also provides customers with the option to run eligible Microsoft Cloud services and workloads from Hyderabad, with additional Azure and AI capabilities expected to roll out progressively.
The project adds to a wider build-out of hyperscale and AI infrastructure in Telangana, where the state is courting large-scale investment in data centres and digital services. Reports by The Economic Times and The New Indian Express said the facility is located at Chandanvelly in Rangareddy district and uses a three-zone design intended to improve resilience and capacity expansion. Microsoft says the investment is also tied to community programmes, including partnerships on skilling, livelihoods and environmental resilience, signalling that the company wants the region to serve both commercial customers and the surrounding ecosystem.
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