Microsoft opens its biggest India cloud region in Hyderabad with three zones
New Delhi: Microsoft has opened its India South Central cloud region in Hyderabad, giving businesses another local base for running Azure and other eligible cloud services. The company says it is its fourth owned cloud region in India and its largest in the country.
The Hyderabad region joins Microsoft’s existing cloud locations in Pune, Chennai and Mumbai. It has three Availability Zones, which are separate facilities built to keep services running even when one site faces a technical problem. Early users include HDFC Bank, Adani Group, Bajaj Finserv and PB Pay.
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🔗https://t.co/kgC0QT8f7i#MicrosoftFrontier #MicrosoftIndia pic.twitter.com/saym33KFON— Microsoft India and South Asia (@MicrosoftIndia) August 6, 2026
Why the Hyderabad region matters
More Indian companies are moving banking systems, business software and AI workloads to the cloud. A local region can reduce delays, provide more storage and computing capacity, and help organisations keep certain data within India.
HDFC Bank plans to use Hyderabad as a disaster recovery region for its Central India cloud setup. This means the bank can shift or restore services if its main cloud region faces an outage.
Puneet Chandok, President of Microsoft India and South Asia, said the region provides “trusted infrastructure close to where data lives, teams work and decisions are made.”
Microsoft links launch to $20.5 billion investment
Microsoft has tied the project to its wider $20.5 billion India cloud and AI commitment. This includes $3 billion announced in January 2025 and another $17.5 billion announced in December 2025.
The new facility uses air-cooled chillers that consume no water for cooling. This could matter in a city where large data centres may face questions about electricity and water use. Microsoft has not shared the region’s exact capacity or energy requirement.
IDC expects India’s public cloud spending to reach $45.7 billion, around ₹4.02 lakh crore, by 2030, according to figures quoted by Microsoft.
The launch gives Microsoft more local capacity for cloud and AI services.