Microsoft opens fourth India cloud region in Hyderabad amid AI expansion

Microsoft's India South Central region, which became operational on August 6, joins existing cloud facilities in Pune, Chennai and Mumbai. The new Hyderabad data centre represents the company's latest effort to expand computing capacity across the country and strengthen India's position as a technology hub.

The Hyderabad facility incorporates sustainable technology, employing air-cooled chillers for thermal management rather than conventional water-based cooling systems, making it effectively water-neutral in its operations. This approach aligns with growing environmental concerns around data centre operations in water-stressed regions.

India currently operates approximately 2 gigawatts of data centre capacity, with projections showing growth to 6-7 gigawatts by 2035, supported by over USD 100 billion in committed investments across the sector. According to Microsoft India and South Asia President Puneet Chandok, the country is positioned to emerge as a critical AI infrastructure hub serving not only its domestic market but also broader Asian and Global South economies.

Microsoft Vice Chair and President Brad Smith underscored that the new region would provide Indian and Asian organisations with enhanced capacity and improved system resilience, strengthening their ability to deploy advanced digital solutions at scale.