Microsoft has launched its fourth cloud region in India, India South Central, in Hyderabad as part of its $20.5-billion investment commitment. The new region will support advanced AI workloads, strengthen Microsoft’s cloud infrastructure, and feature sustainable zero-water cooling technology.
Published Date – 22 September 2026, 01:10 PM
Hyderabad: Microsoft has launched its fourth cloud region in India in Hyderabad, expanding its infrastructure for cloud and artificial intelligence workloads. Called India South Central, the new datacentre region is being positioned as a strategic hub for Asia and the Global South.
The Hyderabad region is part of Microsoft’s $20.5-billion investment commitment in India and features a three-zone architecture designed to provide resilience and support future expansion. The region is already live, with additional Azure and AI services expected to be introduced over the coming months.
Puneet Chandok, President, Microsoft India and South Asia, said in a press release, “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.”
As mentioned in the press release, organisations including Adani Group, Bajaj Finserv, HDFC Bank and PB Pay have already signed up for the new region.
One of the key features of the Hyderabad facility is its cooling system. Microsoft said the India South Central region operates with a zero-water cooling, using high-efficiency mechanical systems that do not use water for cooling. The approach is part of the company’s broader sustainability goals, including its target of becoming carbon negative, water positive and zero waste by 2030.
The new region also expands Microsoft’s sovereign public cloud capabilities in India, offering local capacity, data residency options, Availability Zones and governance features for eligible workloads. As noted in the press release, the infrastructure is designed to help organisations address applicable security, compliance and data protection requirements.
Microsoft is also working on regional connectivity through the planned 3,600-km India-Southeast Asia (I-2SEA) submarine cable system, which will connect India with Malaysia and Singapore. The cable will have landing points at Machilipatnam and South Chennai and is targeted to be ready for service in 2029.
In Telangana, Microsoft’s Data Center Academy is also being delivered in collaboration with Young India Skills University and the Government of Telangana. The 600-hour programme is aimed at preparing students for careers in datacenter operations and infrastructure management.
The company said more than 10 million Indians have already been equipped with AI skills, towards its target of skilling 20 million people by 2030.
