Microsoft Opens India South Central In Hyderabad On $20.5 Billion
The launch takes the company to four operating cloud regions in India, after Pune, Chennai, and Mumbai. Inside the three availability zones, the 2029 horizon, and HDFC Bank and Adani Group adoption.
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TL;DR
Microsoft made its India South Central cloud region generally available in Hyderabad, Telangana on August 6, 2026. The region is Microsoft’s fourth operating cloud region in India and its largest data center hub in the country. It joins Central India in Pune, South India in Chennai, and West India in Mumbai.
Microsoft has committed $20.5 billion to India’s cloud and AI infrastructure across two tranches. A $3 billion commitment announced in January 2025 sits alongside a $17.5 billion commitment announced in December 2025, which Microsoft describes as its largest single investment in Asia. The second tranche runs from 2026 through 2029.
The India South Central region runs across three availability zones and offers sovereign public and private cloud deployment options. Confirmed early customers include Adani Group, HDFC Bank, Bajaj Finserv, PB Pay, Air India, Apollo Hospitals, Meesho, PhysicsWallah, Fractal, and Kore.ai.
Microsoft opened its India South Central cloud region in Hyderabad, Telangana on August 6, 2026. The region is the company’s fourth operating cloud region in India, joining Central India in Pune, South India in Chennai, and West India in Mumbai.
It runs across three physically separated availability zones and supports Azure workloads, Microsoft 365 Copilot, and enterprise applications.
Microsoft states the launch gives it the largest hyperscale cloud presence of any provider in India by regional footprint.
The $20.5 Billion Investment Framework
The region is backed by a cumulative $20.5 billion commitment to India’s cloud and AI ecosystem. That total combines a $3 billion pledge announced in January 2025 with a $17.5 billion commitment announced in December 2025.
Microsoft describes the December tranche as its largest single investment anywhere in Asia. It runs from 2026 through 2029 and funds hyperscale infrastructure, sovereign cloud capability, workforce skilling programs, and ongoing operations.
Puneet Chandok, President of Microsoft India and South Asia, said earlier that the company was moving fastest among hyperscalers building AI capacity in India.
Three Availability Zones And The Hyderabad Footprint
The three availability zones are engineered so services remain online if one zone fails. Microsoft describes the combined physical footprint as roughly the size of two Eden Gardens cricket stadiums.
The site traces to land Microsoft began acquiring in 2022 across three locations around Hyderabad: Chandanvelly, the Ellikatta and Mekaguda area, and Kottur and Shadnagar. Those parcels span over 110 acres.
The original investment framework was valued at approximately Rs 15,000 crore, or about $2 billion, over 15 years. Hyderabad has hosted Microsoft’s largest research and development campus outside Redmond, and the company added a 1.1 million square foot Gachibowli building in February 2026.
Sovereign Cloud And Data Residency Provisions
The region offers sovereign public and private cloud options that keep Indian data inside India. The design supports the Digital Personal Data Protection framework, which governs where regulated personal, financial, and public sector data may be processed.
Microsoft positions the region to run eligible Azure and Microsoft Cloud workloads, Copilot 365, and enterprise applications with local compliance controls and lower latency.
Early Enterprise Customers And Market Position
Microsoft reports early demand across financial services, digital platforms, and diversified conglomerates. Confirmed customers include Adani Group, HDFC Bank, Bajaj Finserv, PB Pay, Air India, Apollo Hospitals, Meesho, PhysicsWallah, Fractal, and Kore.ai.
Adani Group described the region as supporting its digital transformation through infrastructure built for scale and resilience. Microsoft also maintains operational access to two partner regions with Reliance Jio, taking its total Indian regional access to six.
Amazon Web Services has operated a Hyderabad region since 2022, supported by $2.77 billion of announced investment in the market.