Microsoft, Google, Amazon bet big on India: What's driving the AI rush?

Amazon's $35 bn commitment comes as global tech firms deepen their India focus, accelerating AI, cloud and data-centre expansion while strengthening links with a growing, skilled workforce

E-commerce major Amazon on Wednesday announced that it will increase its investments in India to more than $35 billion across all its business lines through 2030. The Seattle-based company plans to distribute this investment across three strategic pillars: artificial intelligence (AI)-driven digitisation, export growth, and job creation, along with broader business expansion.

 

Amazon's latest investment comes at a time when global technology companies are increasing their focus on India. Here is an overview of some of the largest AI and cloud investments made by global tech firms in the country.

Big Tech AI investments in India

Amazon

Earlier this month, Amazon announced a $12.7 billion investment in India to strengthen its AI and web services capabilities through data centre expansions in Telangana and Maharashtra. With Wednesday’s announcement, the company’s total planned investment has now risen to more than $35 billion.

 

 

Amazon's total investments in India since 2010 are now estimated at $40 billion. This includes employee compensation and infrastructure development. Amazon reportedly employs around 120,000 people in India. 

Microsoft

On Tuesday, Microsoft announced an investment worth $17.5 billion over four years to advance India's cloud and AI infrastructure, skilling and ongoing operations. This marked the tech major's largest investment in Asia.

 

The announcement came shortly after a meeting between Prime Minister Narendra Modi and Microsoft CEO Satya Nadella in New Delhi.

 

This investment builds on the $3 billion investment announced in January this year, which the company plans to spend by the end of calendar year 2026. According to Reuters, the company has over 22,000 employees in India.

Google

In October, Google announced a $15 billion investment over five years to build a dedicated AI hub and a gigawatt-scale data centre campus in Visakhapatnam, Andhra Pradesh. The AI hub will include large-scale compute infrastructure, a new large-scale energy supply, an expanded fibre-optic network, and a subsea cable landing station to support both domestic and global demand.

 

This is reportedly Google’s largest investment in India, and the Visakhapatnam facility is being described as the largest AI/data-centre campus outside the United States.

Meta

In August this year, Meta -- the parent company of Facebook, Instagram, and WhatsApp -- formed a partnership with Reliance Industries Limited. The companies announced a joint venture with an initial investment of $100 million to build and scale AI solutions for enterprises in India and selected international markets.

 

Powered by Meta’s advanced open-source Llama models, the joint venture will provide Enterprise AI Platform-as-a-Service that allows organisations to customise, deploy, and manage generative AI models for specific use cases across sales and marketing, IT development and operations.

 

Additionally, Meta is exploring a partnership with Sify Technologies to develop a 500-megawatt data centre in Visakhapatnam, Andhra Pradesh, according a report by The Economic Times.

Evolving role of GCCs in India

The role of Global Capability Centres (GCCs), which are offshore units of multinational companies, is expanding rapidly in India, driven by rising demand and strong government support. According to the EY GCC Pulse Report 2025, released last month, 92 per cent of leaders say GCCs are now doing far more than saving costs.

 

They are increasingly becoming hubs of innovation, helping companies transform their businesses, improve operations, and create more value across the organisation. A growing number of GCCs are now shaping enterprise strategy.

 

AI has become central to how GCCs operate. Generative AI is being adopted widely, especially in high-value areas. It is being used in customer service (65 per cent), finance (53 per cent), operations (49 per cent), and in Information Technology and cybersecurity (45 per cent), according to the report.

Why are these investments important for US?

These investments are significant for the US as India has strong tech capabilities and a young workforce. This comes as Washington is trying to diversify its tech investments in Asia.

 

A December 3 study by US think tank Information Technology and Innovation Foundation (ITIF) said that as US companies move supply chains out of China, India has emerged as a leading destination, especially for technology. India produces more than 800,000 engineering graduates a year, nearly six times the US, and holds over 20 per cent of the global semiconductor design workforce.

 

According to the study, between 2021 and 2023, 984 international companies registered to operate in India, up from 320 in the two years before. India is now the US’s ninth-largest trading partner, with two-way trade reaching over $212 billion in 2024, almost four times the $65 billion recorded in 2008.

India-US trade talks

The big tech investments assume significance given that India is currently negotiating a trade deal with the US after President Donald Trump imposed a 50 per cent tariff on Indian imports, including a 25 per cent penalty for buying Russian crude, starting August 27. The recent round of investments over the last few months has positioned India as a key market, which will likely provide the country with an edge in trade negotiations.