Microsoft has announced the launch of its fourth cloud region in India, located in Hyderabad, enabling customers to run eligible Microsoft Cloud services and workloads from the new location.

The region, named ‘India South Central’, strengthens the company’s presence in the country and positions Microsoft as the largest hyperscale cloud service provider in India, alongside its existing regions in Pune, Chennai, and Mumbai.

The launch forms part of Microsoft’s broader $20.5 billion investment commitment to advance India’s digital and artificial intelligence ecosystem. This includes a $3 billion investment announced in January 2025, followed by an additional $17.5 billion commitment made in December 2025.

Puneet Chandok, President of Microsoft India and South Asia, said building an AI-first nation requires scale, skills, security, and data sovereignty. He added that the company is investing not only to meet demand but also to help India lead globally in technology and innovation.

The Hyderabad facility comprises three availability zones, designed to support mission-critical workloads with high resilience and reliability. It also features advanced zero-water cooling technology, aligning with Microsoft’s sustainability goal of becoming water-positive by 2030.

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The company said the region is already witnessing strong demand from major Indian enterprises, including the Adani Group, HDFC Bank, Bajaj Finserv, and PB Pay, as organizations accelerate cloud adoption and digital transformation initiatives.

The development is expected to further strengthen India’s position as a key global technology hub, attracting investments and enabling businesses to scale efficiently while ensuring compliance with local data regulations.

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Analysts believe the expansion will also boost innovation across sectors such as finance, manufacturing, healthcare, and retail, where demand for secure and scalable cloud infrastructure continues to grow rapidly.

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Microsoft stated it will continue expanding its cloud capabilities and partner ecosystem in India, supporting startups and enterprises in building AI-driven solutions for future growth globally.