On Monday, Microsoft announced the opening of its fourth data center in India, betting on increasing digital consumption in one of the company's fastest-growing regions.
Anant Maheshwari, the head of Microsoft India, said the business was making long-term investments in the nation, though he declined to confirm claims in local media that the new center will cost $2 billion.
According to Maheshwari, a public cloud data center "isn't a one-time investment but a long-term investment."
"Over the last two years, we've increased the capacity of our existing three data centers," he added.
According to IDC, the whole Indian public cloud services industry is estimated to reach $10.8 billion by 2025.
Microsoft began building data centers in India in 2015, with locations in Mumbai, Pune, and Chennai.
For corporations, start-ups, developers, education, and government institutions, it will offer the complete Microsoft portfolio, including cloud, data solutions, artificial intelligence (AI), productivity tools, and customer relationship management (CRM) with superior data protection.
India's government has been pressuring international internet companies to store more of their data in the country, a move seen as New Delhi's attempt to acquire tighter control over the industry.
"Both through the pandemic and going forward," Maheshwari said, Microsoft is continuing to expand its workforce in India, which currently stands at 18,000 people.
Maheshwari added, "We currently service over 340,000 firms across the country."
Telangana, India's southernmost state, is home to the new data center.
Sales volume for cloud as a foundation for digitalization, which is driving India's economic growth and societal advancement, is growing.
Microsoft data center areas in India generated nearly $10 billion in revenue between 2016 and 2020, according to IDC. In addition to the GDP boost, the IDC analysis estimates that 1.5 million new employment were created in the economy, including 169,000 new IT jobs.
As per Maheshwari, the company's business model, which relies on partners providing additional services on top of Azure, has earned $10 billion in revenue in the last five years.
In terms of Microsoft's own expansion plans, the corporation said that it is expanding its Hyderabad campus, which presently spans 2.5 million square feet and employs 18,000 full-time employees.
In India, competitors are joining the race. Amazon stated intentions to spend $2.8 billion on its second data center in the country in late 2020, while Adani Group unveiled plans to create six data center parks across the country last year.
