Amazon and Microsoft have announced to invest a total of $52.5 billion in India. The investment is to accelerate their AI ecosystem and build a new hyperscale data centre. The investments are set to go live mid-2026, expanding the cloud footprint in cities such as Bengaluru, Hyderabad, Chennai, and Pune.

While Amazon pledged to invest $35 billion in India, Microsoft announced an investment of $17.5 billion. Both companies are expanding their hyperscale infrastructure to embed AI into all platforms. The workforce readiness is expected to continue until 2030.

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Tech Titans Microsoft & Amazon To Heavily Invest in AI Infrastructure in India

The tech workforce in India is aplenty, with several US multinational corporations opening offices in the region. While the previous software boom saw multiple jobs, the new AI resurgence will drive innovation on a larger scale. Amazon and Microsoft are leveraging talent in India to build and enhance their global AI infrastructure. This would also create several jobs in the region, boosting the jobs data.

India is leveraging the gap in tech talent by providing AI services to US giants. “A major gap, and therefore a significant opportunity, lies in the shortage of suitable compute infrastructure for running AI models,” said Deepika Giri, IDC’s Regional Head of Research for Big Data & AI, to CNBC. Microsoft CEO Satya Nadella met Prime Minister Narendra Modi to seal the deal.

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Amazon’s Senior Vice President Amit Agarwal said that the company will be a catalyst for India’s growth. “We are humbled to have been a part of India’s digital transformation journey over the past 15 years,” he said. Microsoft and Amazon have been aggressive in their AI investments, spending billions of dollars. “Looking ahead, we’re excited to continue being a catalyst for India’s growth, as we democratize access to AI for millions of Indians,” he said.