Microsoft is making some major investment commitments.
The company revealed today that it would be spending $17.5 billion on AI infrastructure in India during the next four years starting in 2026, as well as a $5.42bn pledge to Canada in the next two years, as per a report by Reuters.
The investment in India builds on the $3bn that the company said it would spend on AI and cloud computing capacity in the country at the start of this year.
A post on X by Microsoft CEO Satya Nadella said: "Thank you, PM Narendra Modi, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing $17.5bn - our largest investment ever in Asia - to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI-first future.
Further details about the plans for India were not stated, but the company has, in recent months, revealed that it would be launching its "India South Central" region, the most recent of many, based in Hyderabad in 2026. Plans for the Hyderabad region were revealed in 2022.
Existing regions include Pune (Central India), Chennai (South India), and Mumbai (West India); all opened in 2015. The company has since delisted its Mumbai region; it may have been converted into a reserved access region.
Microsoft is merely the latest hyperscaler to reveal big investment plans for India. In October 2025, Google confirmed it was developing a $15bn data center project in Andhra Pradesh, and, in January, Amazon Web Services said it would spend $8.3bn in the country.
Meanwhile, Microsoft has also revealed plans to spend CA$7.5bn (US$5.42bn) in Canada over the next two years, aiming to bring new cloud capacity online in the second half of 2026. This is part of the previously announced commitment of CA$19bn (US$13.73bn) in investment between 2023 and 2027.
The company broke ground on a data center in Quebec in September 2024, and has two existing Canadian Azure regions; one in Toronto, Ontario, and one in Quebec City. Both opened in 2016.
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