Microsoft Azure India South Central Region — Hyderabad

Microsoft announced general availability of Azure India South Central, its fourth cloud region in the country, on August 6, 2026. The region is built across three availability zones in and around Hyderabad, Telangana, part of a cumulative $20.5 billion Microsoft has committed to Indian cloud and AI infrastructure. Microsoft is positioning the region explicitly for AI-era workloads, citing what it calls "Frontier Firms" — enterprises restructuring operations around AI agents — as the target customer profile, with early adopters including Adani Group, Bajaj Finserv, HDFC Bank and PhonePe's PB Pay. The company describes the facility's cooling as air-cooled chiller technology engineered for zero operational water consumption, a design choice aimed at reducing the water footprint that has drawn scrutiny for data centers in water-stressed Indian states. No IT power capacity figure has been published for the region. The Hyderabad region joins Microsoft's existing India footprint (Central India/Pune, South India/Chennai, West India/Mumbai) and adds capacity in a market where Microsoft, AWS, Google and domestic operators are all racing to build out AI-ready infrastructure.