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Microsoft Launches India South Central Cloud Region in Hyderabad

The Hyderabad region adds three availability zones and zero-water cooling as Microsoft expands capacity for India’s growing AI demand.

  • On Monday, September 21, 2026, Microsoft launched its India South Central cloud region in Hyderabad as part of a $20.5 billion investment commitment. The facility joins existing sites in Pune, Chennai, and Mumbai, giving Microsoft its largest hyperscale cloud infrastructure presence in India.
  • Microsoft India and South Asia President Puneet Chandok stated India generates 20% of global data but possesses only 3% of data capacity. The new region addresses this infrastructure imbalance to support mission-critical AI workloads at scale.
  • The Hyderabad facility utilizes an innovative zero-water cooling system, relying on air-cooled chillers instead of traditional water-based systems. The design incorporates renewable energy procurement and groundwater recharge measures for sustainable operations.
  • IDC forecasts India's public cloud services spending will reach $45.7 billion by 2030, with AI-related growth accelerating at double the pace. The expansion catalyzes local enterprise development, job creation, and broader economic activity across construction, power, and connectivity sectors.
  • Microsoft Vice Chair and President Brad Smith said the region provides organisations in India and Asia with increased capacity and greater choice. The company envisions India becoming a central AI infrastructure hub for the Global South, positioning the nation as a key compute destination.
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Moneycontrol broke the news in Mumbai, India on Monday, September 21, 2026.
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