Microsoft unveils $23 billion in new AI investments with big focus on India

Microsoft on Tuesday unveiled about $23 billion in new artificial intelligence investments, with the bulk earmarked for India as it deepens its bet on one of the world's fastest-growing digital markets.

As part of the move, Microsoft will spend $17.5 billion in India in its largest Asia investment to build out artificial intelligence infrastructure in the country, CEO Satya Nadella said.

The investment builds on the $3 billion investment Microsoft announced earlier this year. It would give the company the largest cloud presence in India, with the first new data center going live mid-2026.

Microsoft has pledged hefty investments worldwide this year, as the company races to secure more cloud computing capacity to meet the surging demand for AI workloads and compete better with rivals Amazon and Google-parent Alphabet.

Microsoft earlier in the day said it was investing more than C$7.5 billion ($5.42 billion) in Canada over the next two years.

New capacity under the investment will begin to come online in the second half of 2026, Microsoft said, adding that its total estimated investment in Canada amounts to C$19 billion between 2023 and 2027.

Microsoft also said it would expand its Azure Local cloud offering in Canada. It is also partnering with Canadian AI startup Cohere to offer the firm's advanced AI models on its Azure platform.

The company is also launching a dedicated "Threat Intelligence Hub" in Canada to focus on cybersecurity protection and AI security research, and work with the Canadian government and lawmakers to track threat actors and organized crime.

Microsoft currently has more than 5,300 employees across 11 cities in Canada.

Last month, Microsoft announced plans to invest $10 billion in AI infrastructure in Portugal as well as $15 billion in the United Arab Emirates.

Big Tech is under growing investor pressure to show that its hefty investments in AI are paying off, as surging valuations of companies and a web of circular investments fuel concerns of an AI bubble.

Microsoft reported a record capital expenditure of nearly $35 billion for its fiscal first quarter in October and warned that spending would further increase this year. It has predicted it would remain constrained on supply at least until the end of its current fiscal year in June 2026.