Microsoft’s India South Central Cloud Region in Telangana Becomes Strategic Hub for Asia and Global South

New cloud region expands Microsoft’s AI and cloud infrastructure in India, alongside skilling, entrepreneurship and water resilience initiatives

Microsoft has welcomed Shri Duddilla Sridhar Babu, Hon’ble Minister for Information Technology, Electronics and Communications, Telangana, to its India South Central datacenter region in the state. The visit included a tour of the facility and a ceremonial ribbon cutting, highlighting Telangana’s growing role in India’s cloud and AI ecosystem.

The visit follows Microsoft’s announcement earlier this week that India South Central is now live and has been designated as a strategic hub for Asia and the Global South. It is Microsoft’s fourth cloud region in India and features a resilient three-zone architecture designed to expand with customer demand.

India South Central Designed for Cloud and AI Growth

As a strategic hub, India South Central is designed to support long-term capacity expansion, resilience and AI innovation, while addressing growing demand from customers in India and the wider region.

Speaking at the event, Shri D. Sridhar Babu, Hon’ble Minister for Information Technology, Electronics & Communications, Industries & Commerce, and Legislative Affairs, Government of Telangana, said, “I warmly welcome Microsoft’s continued commitment to Telangana and Hyderabad. Its India South Central region adds real strength to our ambition to make Telangana India’s innovation capital. I am proud that Microsoft is helping build one of India’s most advanced technology clusters here. We are seeing strong investment in hyperscale and AI infrastructure, while global innovation centres and GCCs continue to grow rapidly. This is bringing together the infrastructure, talent, academia and innovation we need to build a truly global technology ecosystem. We are building on this foundation with an ambition for Telangana to reach 5 GW of datacentre capacity by 2029 and attract around $30 billion in investment. Microsoft’s investment is an important part of this journey and will further strengthen Hyderabad’s ability to power the next generation of AI, cloud and digital innovation for India and the world.”

Rajiv Kumar, Managing Director and President, Microsoft India Development Centre, said, “Hyderabad has been an important part of Microsoft’s journey in India for over two decades. From engineering innovation to cloud infrastructure and AI, the city has demonstrated the talent, ambition, and ecosystem that will shape the future of technology. Our focus extends beyond digital infrastructure. We are committed to creating opportunities for people and communities through skilling, workforce development, entrepreneurship, and sustainability initiatives. We are working with local partners on water replenishment through groundwater recharge, rainwater harvesting, and watershed resilience, to support long-term sustainable growth of the region. Technology creates its greatest impact when it contributes to lasting economic opportunities, strengthens local communities, and helps build a more resilient future.”

Puneet Chandok, President, Microsoft India and South Asia, said, “India's AI opportunity belongs to those who move from intent to action — and in Hyderabad, we have. India South Central is live: our fourth cloud region in India, the largest hyperscale cloud footprint in the country, with some of India’s most trusted institutions already building on it. Hyderabad gave us world-class talent, a thriving innovation ecosystem and AI-ready cloud infrastructure, the city is becoming an important foundation for the next generation of Frontier Firms across industries. As organizations reimagine how they build, operate and grow with AI, Hyderabad will help power that transformation, not only for India but for customers across the region. We are proud to be investing in the capabilities, talent and infrastructure that can help make India an AI-first nation.”

Community Development and Entrepreneurship

Microsoft said its investment in Telangana extends beyond AI-ready infrastructure. Through partnerships with the Government of Telangana, educational institutions, non-profit organisations and local communities, the company is supporting datacenter-related skills development, entrepreneurship, livelihoods and environmental resilience.

Through its Comprehensive Community Development Programme, Microsoft has supported initiatives covering livelihoods, skills, governance and environmental sustainability. According to the company, these programmes have reached more than 22,400 people in communities around the Hyderabad datacenter region.

Women’s livelihood development is one area of focus. Entrepreneurship programmes covering financial literacy, business management and enterprise development have supported the creation of 117 micro-enterprises, helping sustain 129 families across Rangareddy district. The businesses include tailoring units, retail outlets, catering ventures and local services.

Building Skills for the Datacenter Economy

Microsoft is also developing a local talent pipeline through its Data Center Academy, which brings together academia, government, industry and non-profit organisations.

Partners include the International Institute of Information Technology Hyderabad (IIITH), Young India Skills University (YISU), Government of Telangana and Don Bosco Tech Society. The programme combines their expertise, facilities and workforce development support to prepare learners for roles in the digital infrastructure economy.

The 600-hour industry-aligned programme prepares students for careers in datacenter operations and infrastructure management.

Community skilling programmes around the datacenter region have trained 556 young people, with 118 securing placements. A Data Analytics programme conducted with Shadnagar Municipality has trained another 151 students and supported 108 placements.

These initiatives form part of Microsoft's wider commitment to equip 20 million people in India with AI skills by 2030. Microsoft said Microsoft Elevate India has already equipped more than 10 million people with AI skills towards this goal.

Water Resilience Around India South Central

India South Central operates with effectively zero water use for cooling, supporting Microsoft’s global commitments to become carbon negative, water positive and zero waste by 2030.

Microsoft is also working with local partners on groundwater recharge, rainwater harvesting and watershed resilience. By June 2026, the Elikatta groundwater-recharge programme had added approximately five million litres of recharge capacity.

Microsoft said these initiatives reflect its approach to infrastructure development by combining long-term technology investment with programmes focused on local skills, economic opportunities, community development and environmental resilience.