Hyderabad, May 20. Tech giant Microsoft is preparing to bring its largest India data centre online by mid-2026. According to a senior company executive, the facility is being built in Hyderabad, where Microsoft already has a strong presence.
Rising AI and cloud demand
The new data centre is being built to meet fast-growing demand for AI services, Azure cloud solutions, and products such as Copilot. Surging use of digital services and generative AI across the country has multiplied the need for computing capacity.
Policy tailwinds
The Union Budget 2026 announced a tax holiday until 2047 for foreign companies that provide cloud services using Indian data centres. The move is expected to draw global tech investment, and Microsoft's expansion is a strong signal in that direction.