Telangana Chief Minister A Revanth Reddy, alongside IT and Industries Minister D Sridhar Babu, inaugurated a new Microsoft campus in Hyderabad on Thursday. The 1.1 million sq. ft. LEED-certified facility in Gachibowli marks a major milestone as the company celebrates 25 years in the city.
The Hyderabad center is Microsoft’s largest R&D hub outside the U.S., housing over 20,000 employees, more than half of whom are based in the city. With this expansion, Microsoft plans to hire 4,800 more employees, reinforcing Hyderabad’s status as a global technology hub.
Microsoft’s AI Push in Telangana
At the event, Microsoft announced a strategic partnership with the Telangana government to drive AI adoption and digital transformation across the state. The company will train 1.2 lakh people in AI, equipping students, professionals, and government officials with essential skills.
Under the ADVANTA(I)GE TELANGANA initiative:
- AI Foundations Academy will introduce AI education in 500 government schools, benefiting 50,000 students.
- AI-Industry Pro will upskill 20,000 industry professionals in AI-driven technologies.
- AI-Govern will train 50,000 government officials in Generative AI, cybersecurity, and digital productivity.
Additionally, Microsoft will collaborate with the Telangana government to establish an AI Center of Excellence (AICoE). The center will develop cloud-based AI infrastructure and create a centralized AI Knowledge Hub to compile research, case studies, and best practices.
₹15,000 Crore AI Data Center Expansion in Telangana
Further strengthening its presence in Hyderabad, Microsoft announced a ₹15,000 crore investment to expand its hyperscale AI data centers in Telangana. This will position Hyderabad as one of Microsoft’s largest data hubs globally, driving advancements in AI and cloud computing.
Microsoft India President Rajiv Kumar reaffirmed the company’s dedication to India’s AI-first strategy.
“The new facility 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-driven nation,” he said.
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Formalizing the Partnership
A Memorandum of Understanding (MoU) was signed between Microsoft and the Telangana government, solidifying their collaboration. The agreement follows discussions between CM Revanth Reddy and Microsoft CEO Satya Nadella in January 2025, where they agreed to modernize government IT, cloud infrastructure, and fast-track AI adoption in the state.
With this strategic partnership, Hyderabad is set to become a leading hub for AI innovation, attracting investments and fostering technological advancements across education, governance, and industry.
