Global tech giants Amazon and Microsoft have unveiled a combined $52.5 billion investment plan for India, marking one of the largest inflows of foreign technology capital into the country. Amazon announced on Wednesday it will invest $35 billion by 2030 to expand artificial intelligence-driven digital infrastructure, boost exports, and create jobs. The move follows Microsoft’s commitment of $17.5 billion to strengthen India’s AI ecosystem, announced just a day earlier.
India has emerged as a hub for AI and cloud computing, attracting major global investments in recent months. In October, Google committed $15 billion to establish an AI data centre in the country, while Intel recently partnered with Mumbai-based Tata Electronics as its first customer for Tata’s $14 billion semiconductor manufacturing project.
Prime Minister Narendra Modi highlighted India’s growing prominence in AI after meeting Microsoft CEO Satya Nadella, stating that the country is “optimistic about India” in the global technology landscape.
Amazon’s latest $35 billion investment will build on the $40 billion it has already invested in India, making it one of the largest foreign investors in the country. A significant portion of the funds will be directed toward local cloud services and AI infrastructure, supporting both enterprise and consumer applications.
Microsoft’s $17.5 billion commitment follows a $3 billion investment earlier this year and includes the development of a new “hyperscale cloud region” in Hyderabad, set to launch in mid-2026. Hyperscale regions are clusters of data centres that host computing servers, networking equipment, and IT infrastructure, forming a critical part of AI development. Microsoft also plans to provide India access to its sovereign public cloud, enabling organisations to manage data and applications while keeping sensitive information within the country.
The company said it aims to integrate AI into government platforms, supporting around 310 million informal workers across India. The investment is part of Microsoft’s $23 billion global AI expansion, which also includes projects in Canada, Portugal, and the UAE, reflecting the company’s competition with rivals such as Amazon and Google.
The announcements coincide with India’s push to develop a domestic semiconductor industry. Government-backed and private initiatives are underway to establish chip-making facilities, supported by incentives under India’s semiconductor mission. These efforts complement the country’s focus on AI and cloud computing, leveraging a large internet user base and skilled technology workforce.
Despite these investments, India still lags behind global leaders such as China and the United States in AI and semiconductor production. However, the inflow of foreign capital and government support is expected to accelerate the development of domestic capabilities in key computing technologies. India’s sovereign AI model is scheduled for release in February next year, signalling further efforts to establish the country as a significant player in artificial intelligence.
