Microsoft Expands Hyderabad Campus, Boosts AI Partnership with Telangana

Telangana Chief Minister A Revanth Reddy and IT Minister D Sridhar Babu inaugurated a new Microsoft campus in Hyderabad, enhancing its status as a tech hub. Microsoft plans to hire 4,800 more employees and invest in AI training initiatives and hyperscale data centers, reinforcing Hyderabad's position in global technology innovation.

In a significant development for Hyderabad's tech landscape, Telangana Chief Minister A Revanth Reddy, accompanied by IT and Industries Minister D Sridhar Babu, inaugurated Microsoft's expansive new campus in Gachibowli on Thursday. The inauguration coincided with Microsoft's celebration of 25 years in Hyderabad. This ultra-modern, 1.1 million square foot LEED-certified building will house an additional 2,500 employees, establishing it as the largest Research and Development hub for Microsoft outside the United States. Presently, Microsoft boasts over 20,000 employees in India, with more than half of them stationed in Hyderabad.

During the ceremony, Chief Minister Revanth Reddy conveyed the synergy between Hyderabad and Microsoft, stating, "Hyderabad and Microsoft have grown together, and as a proud representative of this state, I can say with certainty this is just the beginning." Highlighting Hyderabad's burgeoning status as a globally recognized technology powerhouse that fosters innovation and lures international talent, he assured that with partners like Microsoft, the future remains promising. The company's expansion plan includes hiring an additional 4,800 employees, further enhancing the city's reputation as a global IT hub.

Microsoft also announced an ambitious partnership with the Telangana government to provide Artificial Intelligence (AI) training for 1.2 lakh individuals across the state. IT & Industries Minister emphasized that the new campus and AI-focused initiatives epitomize Microsoft's commitment to sustainability, inclusivity, and innovation within Telangana. Under the ADVANTA(I)GE TELANGANA initiative, an AI Foundations Academy will be established to introduce AI education in 500 government schools, benefiting around 50,000 students. Furthermore, the AI-Industry Pro program will upskill 20,000 industry professionals, while AI-Govern aims to train 50,000 government officials in digital productivity, Generative AI, and cybersecurity.

As part of these initiatives, Microsoft will collaborate with the Telangana government to establish an AI Center of Excellence (AICoE). This endeavor aims to develop a cloud-based AI infrastructure and create a centralized AI Knowledge Hub to compile research, case studies, and best practices. Additionally, Microsoft announced a staggering Rs 15,000 crore investment to expand its hyperscale AI data centers in Telangana, positioning Hyderabad as one of Microsoft's largest data hubs globally, further solidifying its role in cutting-edge AI and cloud technologies.

The India President of Microsoft, Rajiv Kumar, reiterated the company's commitment to support India's vision of becoming a leader in AI innovation. He remarked, "The new building at the Microsoft India Development Center (IDC) in Hyderabad underscores our commitment to Telangana's innovation ecosystem and India's vision of becoming an AI-first nation. This expansion will provide state-of-the-art infrastructure to our teams, enabling them to innovate and develop next-generation AI products." A Memorandum of Understanding was signed between Microsoft and the Telangana government to formalize these initiatives, following a meeting earlier in January 2025 between CM Revanth Reddy and Microsoft CEO Satya Nadella. During this meeting, they pledged to collaborate closely to upgrade government IT systems and cloud infrastructures while expediting the adoption of AI solutions.

(With inputs from agencies.)