Microsoft launches new Hyderabad cloud region, names it strategic hub for Asia, Global South

Microsoft on Monday launched its fourth India cloud region, designating its new Hyderabad datacentre region as a strategic hub for Asia and the Global South.

The company said its India South Central region, which is now live, features a three-zone architecture designed to support resilient operations and scale with demand.

Microsoft also said its cloud regions across India are now AI-enabled, with AI-capable hardware, high-efficiency cooling systems and the platform infrastructure needed to run advanced AI workloads.

The Hyderabad region currently offers a broad portfolio of Azure services, with additional Azure and AI capabilities, including Microsoft Foundry, planned to be rolled out in the coming months.

Leading Indian enterprises and critical infrastructure organisations, including Adani Group, Bajaj Finserv, HDFC Bank and PB Pay, have signed up on the new region, Microsoft said.

The company said the new region forms part of its $20.5 billion investment commitment in India and will provide local capacity, data residency options, availability zones and governance capabilities for organisations deploying eligible cloud and AI workloads.

"India South Central is our fourth cloud region in the country, built for advanced AI workloads and a strategic hub for Asia and the Global South," Microsoft India and South Asia President Puneet Chandok said.

He said infrastructure alone does not make a country AI-ready, and that Microsoft has also equipped more than 10 million Indians with AI skills as part of its goal to skill 20 million people by 2030.

In a video message, Microsoft Vice Chair and President Brad Smith said the new region would give organisations in India, and more broadly Asia, more capacity, greater resilience and more choice.

Minister of State for Commerce and Industry and Electronics and Information Technology Jitin Prasada said the launch strengthens the digital infrastructure needed to support India's ambition of becoming an AI-first nation.

"As we advance the IndiaAI Mission, investments such as these expand national AI capability, accelerate innovation, and enable developers, enterprises, and public institutions to build and deploy AI with confidence," Prasada said at Microsoft AI Infrastructure Summit in New Delhi.

Microsoft said the India South Central region has been designed to support sensitive workloads and help customers address applicable data protection, cybersecurity, sector-specific and sovereignty requirements.

Its India cloud regions provide capabilities aligned with MeitY guidelines and are designed to help customers address applicable requirements under the Digital Personal Data Protection framework, as well as sector-specific expectations from authorities such as the Reserve Bank of India and CERT-In.

Microsoft also said the Hyderabad facility uses high-efficiency mechanical cooling that delivers effectively zero water use for cooling.

As a consortium partner in the planned India-Southeast Asia (I-2SEA) submarine cable system, Microsoft is also supporting a 3,600-km subsea corridor connecting India, Malaysia and Singapore.

The cable system will have dual landings in India at Machilipatnam and South Chennai and is targeted to be ready for service in 2029.

Microsoft said the system is expected to improve network resilience and provide additional high-capacity connectivity to support growing cloud, AI and hyperscale demand across India and the region.