Disruptive Move Or Business As Usual?

Microsoft is investing $3 billion in data centres and undertaking Al upskilling initiatives. While these moves signal India's strategic importance to the tech major, questions remain about their impact on inclusive growth and skill development in an Al-driven future By Rohit Chintapali

- Rohit Chintapali

MICROSOFT chief Satya Nadella capped off 2024 as the last major global leader to visit India and interestingly also started 2025 as the first, continuing his India sojourn until at least January 7-8, 2025.

During this visit, he announced many initiatives, placing India at the centre of all things Microsoft. In Bengaluru, Nadella unveiled Microsoft's largest-ever investment in India, $3 billion over two years, to expand the company's data centre infrastructure and develop a scalable AI computing ecosystem.

He also launched the second edition of the ADVANTA(I) GE India initiative to train 10 million people in AI skills by 2030. Then, in New Delhi, he revealed key core sector partnerships with the Mahindra Group, RailTel, Bajaj Finserv, upGrad and Apollo.

When you list all the announcements, they appear extensive and well-rounded, with the $3 billion investment in expanding infrastructure standing out as particularly significant. However, it raises the question: is this investment aimed at shaping the broader India story, or is it part of the usual playbook of long-term bets that companies often announce to secure future dividends?

For starters, the $3 billion investment for expansion was termed Microsoft's single largest commitment in India. However, similar announcements have been made globally and aren't unprecedented. For instance, in 2024, the company pledged $7 billion for data centres in Spain, $2.7 billion in Brazil, over $3 billion in Sweden, $2.2 billion in Malaysia, and $1.7 billion in Indonesia, among others. These investments point to data centres' critical role in meeting the growing demand for AI across industries and scaling infrastructure aggressively to stay ahead in the AI-driven future - including India.