en.Wedoany.com Reported - Microsoft officially launched its largest data center in India in Hyderabad on Thursday, signing the Adani Group and HDFC Bank as early users. This move marks the latest step in Microsoft's competition with rivals for a share of India's rapidly growing AI market.

The newly launched India South Central facility brings Microsoft's cloud regions in India to four, following its existing data centers in Pune, Chennai, and Mumbai. With this facility in operation, Microsoft's position as India's largest cloud service provider is further consolidated.

The Windows developer has committed to investing approximately $20.5 billion to expand its operations in India, betting on a market with over 1 billion internet users and a deep pool of technical talent. Its cloud division, Azure, reported double-digit revenue growth in India over the past two years.

Additionally, Microsoft has partnered with Jio, owned by Indian billionaire Mukesh Ambani, to operate two data centers in India.

Puneet Chandok, President of Microsoft India, stated that creating value with AI requires "trusted infrastructure close to where data resides, where teams work, and where decisions are made," and that the new facility is "a critical part of that foundation."

Competitors Alphabet and Amazon are also pouring substantial funds into data center capacity in India, driven by the country's vast potential AI user base.

Not all related construction plans are progressing smoothly. Environmental advocates have accused authorities of fast-tracking a planned Google data center hub project without adequately weighing risks to water supply and wildlife. The Indian government has denied these allegations.