Microsoft has officially brought its new India South Central data centre region in Hyderabad online, marking a major expansion of its cloud and artificial intelligence infrastructure in India. Announced on September 21, 2026, the new region is designed to support growing demand for Azure cloud services and advanced AI workloads while strengthening India’s role as a technology hub for Asia and the Global South.
The Hyderabad region is part of Microsoft’s US$20.5 billion commitment to India, with the investment being directed toward cloud infrastructure, AI capabilities, skills development and related digital infrastructure. Microsoft said the new data centre region turns a significant portion of that commitment into operational infrastructure for Indian organisations and enterprises.
Microsoft India South Central Data Centre: What It Offers
The India South Central region features a resilient three-zone architecture designed to support high availability and future expansion. Microsoft said the region is launching with a broad portfolio of Azure services and is designed to support additional Azure and AI capabilities as they become available.
The infrastructure is particularly focused on supporting organisations running AI-intensive workloads, giving businesses access to cloud computing resources closer to their data and operations. Microsoft has identified the new Hyderabad region as a strategic hub serving not only India but also wider markets across Asia and the Global South.
Companies including Adani Group, Bajaj Finserv, HDFC Bank and PB Pay have already signed up to use the new region, according to Microsoft.
Focus on Data Security and Sovereignty
The new region also expands Microsoft’s sovereign cloud capabilities in India. It provides local capacity, data residency options, Availability Zones and governance features designed to help organisations address applicable security, regulatory and sovereignty requirements.
Microsoft said its India cloud regions are designed to help customers address requirements associated with India’s Digital Personal Data Protection (DPDP) framework, as well as sector-specific expectations from organisations such as the Reserve Bank of India and CERT-In.
Zero-Water Cooling and Sustainability
Sustainability is another key feature of the Hyderabad infrastructure. Microsoft said the India South Central region uses high-efficiency mechanical cooling with effectively zero water use for cooling. The company also highlighted community initiatives around groundwater recharge, rainwater harvesting and watershed resilience in the Hyderabad region.
AI Skills and India’s Digital Future
Microsoft’s infrastructure expansion is accompanied by a major focus on AI skills. The company announced that it has equipped more than 10 million Indians with AI skills, moving toward its goal of reaching 20 million people by 2030.
With AI adoption accelerating across Indian businesses, the Hyderabad data centre is expected to provide additional cloud capacity and infrastructure for organisations developing and deploying AI applications. The launch strengthens Microsoft’s expanding cloud presence in India and highlights Hyderabad’s growing importance in the country’s AI and data centre ecosystem.
