On Monday, the government urged Microsoft to set up upcoming data centres nearer to power generation hubs instead of cable landing stations, with Electronics and IT Secretary S. Krishnan stating that this move would reduce expenses for both the company and the nation.

During the inauguration of Microsoft’s fourth cloud region in India, located in Hyderabad, Krishnan stated that constructing data centers close to power sources is simpler and more cost-effective than building them near coastal cable landing hubs like Chennai.

It will be far more cost-effective to locate operations nearer to the source of power generation, he said, adding that the government will continue to streamline approvals to more rapidly meet the needs of both the nation and the global community.

On Monday, Microsoft officially opened its fourth cloud region in India, located in Hyderabad, as part of its USD 20.5 billion investment pledge toward the nation’s digital and AI infrastructure.

The India South Central region, which became broadly available on August 6, complements the company’s existing cloud regions in Pune, Chennai, and Mumbai.

Krishnan described the launch as a major step in bolstering India’s data centre and AI infrastructure, emphasizing that the country must both tap into leading global technologies and develop its own sovereign computing capabilities at the same time.

He stated that India’s population of 1.4 billion, combined with its expanding digital public infrastructure, produces vast amounts of data that serve as a "treasure house" for AI applications, positioning the country to become "the world’s powerhouse for applications."

Krishnan noted that India’s tax regime, its business-friendly environment, and the new telecom legislation enabling smoother interconnection of infrastructure have made it easier to establish and link data centres to the national grid in India than in many other countries.