HYDERABAD, September 21, 2026: Microsoft has formally launched its India South Central cloud region in Hyderabad, marking the company’s fourth cloud region in India and expanding its infrastructure for cloud computing and advanced artificial intelligence workloads.
The Hyderabad region joins Microsoft’s existing cloud regions in Pune, Chennai and Mumbai. The facility became generally available on August 6 and was formally highlighted at the Microsoft AI Infrastructure Summit in New Delhi on Monday.
The launch is part of Microsoft’s $20.5 billion investment commitment in India, aimed at expanding cloud and AI infrastructure, skilling and related operations. Microsoft has designated Hyderabad’s India South Central region as a strategic hub serving India, Asia and the Global South.
The new region has a three-zone architecture, with independent infrastructure designed to provide resilience and support continued expansion. Microsoft said additional Azure and AI services will be introduced in the region as they become available.
Companies including Adani Group, Bajaj Finserv, HDFC Bank and PB Pay have already signed up to use the new region, according to Microsoft. The infrastructure is intended to help organisations run eligible sensitive workloads in India while addressing applicable security, compliance and data-residency requirements.
Sustainability is another feature highlighted by Microsoft. The company said the Hyderabad facility uses effectively zero water for cooling, while its local community initiatives include groundwater recharge and rainwater-harvesting programmes.
Microsoft said more than 10 million Indians have been equipped with AI skills through its Elevate India programme, with the company targeting 20 million people by 2030. A 600-hour Data Center Academy programme is also being delivered in collaboration with Young India Skills University and the Telangana government.
The Hyderabad launch comes as demand for AI and cloud infrastructure continues to grow in India. Microsoft estimates that India produces around 20% of the world’s data while accounting for about 3% of global data-centre capacity, highlighting the potential for further infrastructure expansion.
With Hyderabad now serving as Microsoft’s fourth Indian cloud region, the company is positioning the city as an important base for AI-enabled cloud services and digital infrastructure across India and the wider region.