Microsoft's largest data centre in India to go live by mid-2026.

New Delhi: Microsoft's largest data center in India is on track to go live in the southern tech hub of Hyderabad by mid-2026.

The facility is a cornerstone of the company's regional growth strategy and aims to meet skyrocketing demand for AI services and cloud infrastructure.

Microsoft is expanding its cloud and artificial intelligence infrastructure footprint in India with a major new data centre project in Hyderabad, adding to its existing regional facilities in Pune, Chennai and Mumbai.

The first phase of the Hyderabad hub is expected to become fully operational by mid-2026 as part of the company’s broader $17.5 billion investment strategy across Asia, marking Microsoft’s largest regional infrastructure commitment to date.

The expansion is being driven by strong domestic demand for Microsoft Azure cloud services and the growing adoption of Microsoft 365 Copilot among major Indian technology companies, including Infosys, Cognizant and Tata Consultancy Services.

Microsoft Chief Financial Officer Amy Hood said the company has projected global capital spending of approximately $190 billion in 2026 to support high-density, AI-focused data centre infrastructure worldwide.

The Hyderabad facility will also provide localized “sovereign cloud” solutions aimed at meeting India’s Digital Personal Data Protection requirements, strengthening compliance and data residency capabilities for enterprise and government customers.