Microsoft opens giant data centre in Hyderabad, takes AI battle to Google

Microsoft has opened its biggest India data centre in Hyderabad, strengthening its AI infrastructure as it competes with Google and Amazon for a larger share of the country's fast-growing cloud market. The launch comes amid billions of dollars in investments and an intensifying race to power India's AI future.Microsoft has opened a massive data centre in Hyderabad with Adani Group as early customer. (Representational image created using AI)Microsoft has opened its biggest data centre in India, strengthening its push in the country's rapidly growing artificial intelligence (AI) market as it takes on rivals Google and Amazon in the race to power India's digital future. The new India South Central cloud region in Hyderabad was launched on Thursday and is already being used by major companies including Adani Group and HDFC Bank. The facility expands Microsoft's cloud footprint in India to four regions, alongside its existing data centres in Pune, Chennai and Mumbai, making it the country's largest cloud infrastructure provider.The launch comes at a time when global technology companies are investing billions of dollars in India, betting that the country's massive internet user base, booming startup ecosystem and growing AI adoption will drive the next phase of cloud computing growth. Microsoft has committed around $20.5 billion to expand its India operations, making it one of the company's biggest investment markets outside the US. Cloud infrastructure has become the backbone of AI services. Companies need powerful data centres to train AI models, process huge amounts of data and run AI-powered applications with low latency. By building more local infrastructure, Microsoft is aiming to attract businesses that want their data stored and processed within India.The company said its Azure cloud business has delivered double-digit revenue growth in India for the past two years, highlighting rising demand from enterprises moving their workloads to the cloud. Microsoft also operates two additional data centres in partnership with Reliance Jio, further strengthening its presence in the country. Puneet Chandok, President of Microsoft India, said local infrastructure is essential for AI adoption."Creating value with AI requires trusted infrastructure close to where data lives, teams work and decisions are made," Chandok said, adding that the new Hyderabad facility "is a critical part of that foundation." Google and Amazon are also investing in IndiaMicrosoft's expansion comes as Google and Amazon are also investing heavily in India's data centre capacity, seeing the country as one of the world's biggest future AI markets. However, not every project has progressed without challenges.Google's planned $15 billion hyperscale data centre hub in Visakhapatnam, Andhra Pradesh, has run into growing opposition from environmental groups. Activists argue that the massive facility could worsen water shortages and affect nearby wildlife habitats, with recent protests carrying slogans such as "We cannot drink DATA." The project, being built with Adani Group, is also facing legal challenges over concerns related to water usage and its proximity to the Kambalakonda Wildlife Sanctuary. Google has defended the project, saying it will comply with all applicable laws and use advanced air-cooling technology to minimise water consumption. The Andhra Pradesh government has also rejected allegations that the project was fast-tracked without proper environmental assessment, while saying it remains open to addressing legitimate concerns raised by citizens.The debate shows a growing global concern surrounding AI infrastructure. Modern data centres consume enormous amounts of electricity and water for cooling, leading to similar protests in several countries, including the United States.- EndsPublished By: Ankita GargPublished On: Aug 6, 2026 18:51 IST