Microsoft's largest India data centre to open in Hyderabad by mid-2026

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.

India's AI ambition

A new AI roadmap unveiled by NITI Aayog aims to add nearly $1.7 trillion to India's GDP by 2035. Infrastructure like data centres is seen as the backbone of that ambition, since training and running AI models demands vast computing resources.

Jobs and growth

Experts believe large data centres will not only create direct employment but also give local startups and enterprises access to world-class cloud infrastructure. Cities such as Hyderabad and Bengaluru are fast emerging as the country's AI and cloud hubs.