Microsoft's largest India data center due mid-2026

Microsoft said its largest data center in Hyderabad, India, is on track to open by mid-2026 as the company expands cloud and AI capacity in a market it sees as important for future growth.

Demand is rising for Azure and the US$30-a-month Microsoft 365 Copilot, Reuters reported.

Infosys, Cognizant, and Tata Consultancy Services each use about 50,000 Copilot licenses, said Puneet Chandok, Microsoft India & South Asia president.

Microsoft said late in 2025 that it would invest US$17.5 billion in India, its biggest outlay in Asia, on top of a US$3 billion pledge made at the start of 2025.

The company has more than 22,000 employees in the country, said Chandok.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Microsoft leans on India IT services firms to expand Copilot use

Infosys, Cognizant, and Tata Consultancy Services are large Copilot buyers. They also help enterprise clients put Microsoft AI tools to work. The source material supports that partner role, though it does not establish them as Microsoft’s main sales route in India 1.
Cognizant says it has more than 21,000 Azure-certified specialists after buying 3Cloud, a cloud consulting company. It also sells products for sectors such as insurance and retail that can include Azure OpenAI and Copilot 1.
That setup can help Microsoft grow because these firms use the tools inside their own operations and roll them out for customers. Infosys, Cognizant, and Tata Consultancy Services each have about 50,000 Copilot licenses, but the source material does not describe them as a distribution network for Microsoft AI 2.

AI spending reaches far beyond cloud services

Microsoft says International Data Corporation (IDC), a market research firm, projects that each new dollar spent on AI solutions and services could add US$4.9 to the global economy 3.
Businesses are using AI to speed drug discovery in pharmaceuticals and forecast trends in supply chain management 3.
The buildout also sharpens a worldwide hiring squeeze for AI talent, said Puneet Chandok, president, Microsoft India and South Asia 2.