New Delhi | Microsoft on Monday formally launched its fourth India cloud region, in Hyderabad, as part of its USD 20.5 billion investment commitment to the country's digital and AI infrastructure.

The India South Central region, which became generally available on August 6, joins the company's existing regions in Pune, Chennai and Mumbai.

The Hyderabad facility uses effectively zero water for cooling, relying on air-cooled chillers instead of traditional water-based systems, Microsoft India and South Asia President Puneet Chandok said.

He noted that the country has about 2 GW of data centre capacity, which is set to rise to 6-7 GW by 2035, with over USD 100 billion in investments already committed.

India would emerge as an AI infrastructure hub not just for itself but for Asia and the Global South, Chandok said.

In a video message, Microsoft Vice Chair and President Brad Smith said the new region would give organisations in India, and more broadly Asia, more capacity, greater resilience and more choice.

The expansion comes at a time of rapid digital growth in the country.

According to data from research firm IDC, India's public cloud services spending is forecast to reach USD 45.7 billion by 2030, growing at an annual rate of 22.2 per cent, with AI spending expected to grow at double that pace.