Microsoft has launched its fourth cloud region in Hyderabad, featuring water-free cooling and targeting enterprise demand, as the company continues significant investments in India’s digital and AI infrastructure.
Microsoft shares were little changed after the company brought its India South Central cloud region online in Hyderabad, giving the software giant a fourth operational cloud hub in the country. GuruFocus said the stock was trading well below its fair-value estimate, underscoring a valuation gap even as the company continues to pour capital into cloud and artificial intelligence infrastructure.
The Hyderabad site adds three availability zones, a design meant to improve resilience by spreading workloads across separate data centres. According to DataCenterDynamics and Business Standard, the region is part of Microsoft’s broader $20.5 billion commitment to India’s digital and AI infrastructure, although that figure covers the company’s wider expansion rather than the Hyderabad facility alone.
Microsoft has also positioned the site as a response to one of the region’s toughest operating constraints: water use. Reports from Business Standard said the new cloud region relies on air-cooled chillers and is effectively water-free for cooling, a feature that could matter in a market where power and water availability can shape data-centre growth. The company has not disclosed the site’s capacity, server count or expected revenue.
Early customers named by Microsoft include Adani Group, Bajaj Finserv, HDFC Bank and PB Pay, signalling demand from large enterprise users as well as financial services firms. The Hyderabad launch gives Microsoft a local cloud footprint alongside existing regions in Pune, Chennai and Mumbai, and the company is pitching the facility as infrastructure for India, South Asia and other emerging markets.
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