Microsoft has just announced that it plans to establish a new data center region in Hyderabad, Telangana, India. This investment targets cloud and AI-driven customer operations in the country.

Being the fourth Microsoft region in India, the Hyderabad data center region will join the existing network of three regions established across Pune, Mumbai, and Chennai. The new facility is expected to offer the entire Microsoft portfolio across the cloud, data solutions, artificial intelligence (AI), productivity tools, and customer relationship management (CRM).

“Cloud services are poised to play a critical role in reimagining the future of business and governance and enabling overall inclusion in the country,” said Anant Maheshwari, President, Microsoft India.

“The new datacenter will augment Microsoft’s cloud capabilities and capacity to support those working across the country. It will also support new entrepreneurial opportunities while meeting critical security and compliance needs. The new datacenter region is a testament to our mission to empower the people and organizations of India to achieve more. We are pleased to be collaborating with the Government of Telangana on this major milestone and we deeply appreciate their support.”

As part of the investment for the new cloud region, Microsoft announced that it is partnering closely with the government of Telangana to accelerate the adoption of cloud, AI, IoT and cybersecurity solutions for governance. This includes efforts to upskill government officials in next generation technology, supporting young girls to build careers in cybersecurity through the CyberShikshaa program, and partnering on skilling programs like DigiSaksham with the Ministry of Labour and Employment to equip jobseekers from rural areas with technical skills.

“I am extremely delighted that Microsoft chose Hyderabad as the destination for its largest datacenter investment in India. This will also be one of the largest foreign direct investments (FDIs) the state has attracted. Microsoft and Telangana have a long history, with Hyderabad hosting one of the largest Microsoft offices in the world, and I am happy to see the relationship grow,” said Shri. KT Rama Rao, Minister of Municipal Administration & Urban Development, Industries & Commerce, and Information Technology, Government of Telangana.

Last month, Microsoft also announced an agreement with HTX (Home Team Science and Technology Agency) to develop a sovereign Azure-powered cloud in Singapore, expected to equip HTX with on-demand, high performance cloud computing and data storage resources.