Highlights
- Amazon announces £26.3bn investment by 2030, adding to existing £30bn commitment.
- Microsoft pledges £13.1bn including new Hyderabad data centre launching mid-2026.
- Investment surge follows Google's £11.3bn and Intel's £10.5bn semiconductor plans.
Tech giants Amazon and Microsoft have unveiled a combined £39.4 bn ($52.5bn) investment plan for India, marking the country's rapid emergence as a global artificial intelligence hub.
Amazon announced on Wednesday it would invest £26.3 bn ($35bn) by 2030 to advance AI-driven digitisation, export growth and job creation. The commitment comes just one day after Microsoft pledged £13.1 bn ($17.5bn) to strengthen India's AI ecosystem.
The American e-commerce giant's latest investment builds on an existing £30 bn ($40bn) already committed to India, establishing Amazon as "the largest foreign investor" in the country. A significant portion will develop local cloud and AI infrastructure.
Microsoft's fresh commitment follows a £2.3 bn ($3bn) investment announced earlier this year. The package includes a new "hyperscale cloud region" – a cluster of data centres in Hyderabad city, set to launch in mid-2026.
India's tech momentum
When it comes to AI, the world is optimistic about India," prime minister Narendra Modi said on X after meeting Microsoft chief executive Satya Nadella on Tuesday.
India will also gain access to Microsoft's "sovereign public cloud", offering tools to help organisations manage data while keeping sensitive information within the country. The company aims to integrate AI into government platforms, supporting approximately 310 million informal workers.
The announcements follow recent major investments from other technology firms. Google unveiled a £11.3 bn ($15bn) investment in October to build an AI data hub, while Intel announced collaboration with Mumbai-based Tata Electronics for £10.5 bn ($14bn) semiconductor manufacturing plans.
India's India Investment is part of Microsoft's £17.3 bn ($23bn) AI expansion across Canada, Portugal and the United Arab Emirates, as the company competes with rivals including Amazon and Google.
While India boasts a billion internet users and substantial tech talent, it lags behind global leaders China and the United States in AI development.
However, the government's semiconductor mission offers generous subsidies to firms establishing chip-making facilities. India's sovereign AI model is expected to launch in February next year.
