Big Tech’s New Love Story with India: Amazon and Microsoft Announce New Mega Billion-Dollar Investments

Global tech giants are rewriting their India playbook. In a single week, Microsoft and Amazon unveiled two of the biggest investment announcements India has seen in recent years, signalling a deeper shift in how Silicon Valley views the world’s largest emerging digital economy.

Microsoft kicked things off with a massive $17.5 billion commitment to supercharge India’s AI and cloud infrastructure over the next four years. CEO Satya Nadella’s message was clear: India is ready to lead the AI era and Microsoft wants to be the backbone of that transformation.

Barely a day later, Amazon responded with its own headline grabber. The company announced a long-term investment plan of more than $35 billion by 2030, expanding on nearly $40 billion it has already poured into India. The focus this time is on AI-driven digitisation, turbocharged exports and building one of the country’s largest job creation engines.

India’s Digital Leap Gets a Big Tech Boost

For India, the combined bets from Amazon and Microsoft are more than financial commitments. They are strong endorsements of India’s digital growth story.

Microsoft’s plans include new hyperscale data centres, expanded cloud regions and an aggressive push to train millions of Indians in AI skills. The upcoming India South Central cloud region in Hyderabad is part of this vision and is expected to significantly cut latency for Indian enterprises. The company is also working closely with public institutions to embed AI into national-scale systems.

Amazon’s investment has a wider footprint. While AWS and cloud remain central, Amazon is doubling down on ecommerce exports, logistics expansion and enabling millions of small businesses with AI-powered tools. Its goal of taking India’s ecommerce exports to $80 billion by 2030 shows how deeply the company wants to integrate with the country’s economic fabric. It also said by 2030, the company will support 3.8 million direct, indirect, induced and seasonal jobs in the country.

“We are humbled to have been a part of India’s digital transformation journey over the past 15 years, with Amazon’s growth in India perfectly aligned with the vision of an Atmanirbhar and Viksit Bharat,” says Amit Agarwal, Senior VP Emerging Markets, Amazon. “We have invested at scale in growing the physical and digital infrastructure for small businesses in India, creating millions of jobs, and taking Made-in-India global.”

Both commitments also align with India’s broader push for digital sovereignty, data localisation, AI innovation and skilling at scale.

What’s in It for Amazon and Microsoft

For Microsoft, the India bet is both strategic and competitive. India’s booming developer base, large enterprise market and government demand for sovereign-ready cloud solutions make the country a crucial battleground in the global AI race.

With rivals like Google Cloud and AWS aggressively expanding as well, embedding Azure deeply inside India’s digital ecosystem is essential for long-term dominance.

Microsoft also gains access to a massive testing ground for public-scale AI deployments. From employment platforms to education systems, the company’s tools and models will influence how millions of Indians interact with digital governance.

Amazon’s gains are equally significant but come from a broader spectrum. India is one of Amazon’s most important ecommerce markets. It is also a manufacturing and export engine, a logistics playground and a huge market for AWS.

The company’s focus on enabling small businesses with AI creates loyalty and lock in, and expanding fulfilment and logistics networks strengthens its competitive edge.