Microsoft unveils fourth data centre in India

Microsoft unveils fourth data centre in India

As rivals also join race to build out space.

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Microsoft has unveiled its fourth data centre in India, betting on rising digital consumption in one of its fastest-growing markets.

Microsoft India head Anant Maheshwari said the company was making long-term investments in the country, although he declined to confirm reports by local media of a US$2 billion (S$2.73 billion) price tag for the latest centre.

"A public cloud data center is not a one time investment, it is a continuous investment that we have," Maheshwari told Reuters.

"In the last two years, we doubled the capacity in the existing three data centres."

The overall Indian public cloud services market is expected to reach US$10.8 billion by 2025, according to research firm IDC.

India's government has been nudging foreign tech companies to store more of their data locally, a move seen as New Delhi's attempt to gain stricter oversight of Big Tech firms.

Maheshwari said Microsoft was continuing to grow its workforce in India from 18,000 currently "both through the pandemic and going forward."

"We already serve more than 340,000 companies in the country," Maheshwari said.

The new data centre is located in India's southern state of Telangana.

The company's business model, which relies on partners building additional services on top of its cloud platform, Azure, generated total revenues of about US$10 billion in the Indian economy in the last five years, Maheshwari said.

Competitors are joining the race in India.

Key rival Amazon announced in late 2020 it would spend US$2.8 billion to build its second data centre in the country, while Adani Group last year announced plans to build six data centre parks across the country.

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