Microsoft has designated India South Central, its new Hyderabad datacenter region, as a strategic hub for Asia and the Global South, announcing that all its datacenter regions across India are now AI-enabled. The announcement, made at the Microsoft AI Infrastructure Summit in New Delhi on September 21, 2026, marks a major step in turning the company’s $20.5 billion India investment into operational AI infrastructure.
Puneet Chandok, President of Microsoft India and South Asia, said the India South Central region is Microsoft’s fourth cloud region in the country, built specifically for advanced AI workloads with a resilient three-zone architecture. Leading Indian enterprises including Adani Group, Bajaj Finserv, HDFC Bank and PB Pay have already signed on to use the new region.
What Makes India South Central A Strategic AI Hub?
The Hyderabad region is built with AI-capable hardware, high-efficiency cooling systems and the platform foundation required to run advanced AI workloads, including support for Microsoft Foundry as additional capabilities roll out over the coming months. Beyond serving Indian demand, Microsoft says the region is positioned to support customers across South Asia and contribute to AI innovation for the wider Asia-Pacific and Global South markets, combining hyperscale infrastructure with India’s engineering talent and experience building technology for large, diverse markets.
What Does This Mean For Indian Businesses Using AI?
For enterprises and public institutions, the new region expands Microsoft’s Sovereign Public Cloud foundation in India, offering local capacity, data residency options and governance capabilities designed to help organisations meet requirements under India’s Digital Personal Data Protection framework and guidance from the RBI and CERT-In. A BCG study cited by Microsoft estimates that India’s datacenter buildout could generate $140-200 billion in economic output through 2030, underscoring how central AI infrastructure has become to the country’s digital economy.
Industry Reaction And Government Commentary
Shri Jitin Prasada, Union Minister of State for Commerce and Industry, and Electronics & Information Technology, said the launch strengthens the digital infrastructure needed to support India’s ambition to be an “AI-first nation” and advance the IndiaAI Mission. Chandok added that “compute alone does not make a nation AI-ready,” pointing to Microsoft’s broader commitment to skill more than 10 million Indians in AI so far, on the way to a target of 20 million by 2030.
What Happens Next?
Microsoft said additional Azure and AI services will roll out in the India South Central region in the coming months. The company is also a consortium partner in the planned India-Southeast Asia (I-2SEA) submarine cable system, a 3,600-kilometre subsea corridor linking India, Malaysia and Singapore, targeted for service by 2029, which is expected to further strengthen regional AI and cloud connectivity.
Frequently Asked Questions
What is India South Central?
India South Central is Microsoft’s new datacenter region in Hyderabad, now designated a strategic hub for Asia and the Global South, built with AI-ready infrastructure across a three-zone architecture.
Which Indian companies are using the new Microsoft region?
Adani Group, Bajaj Finserv, HDFC Bank and PB Pay are among the enterprises already running workloads on the India South Central region.
How much has Microsoft invested in India’s AI infrastructure?
Microsoft has committed $20.5 billion to India, and the India South Central launch marks that investment becoming operational cloud and AI infrastructure.
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