HYDERABAD: Chief Minister A. Revanth Reddy along with Minister for IT & Industries D. Sridhar Babu, on Thursday inaugurated a brand new campus of Microsoft as the company celebrates its 25 years in Hyderabad. This state-of-the-art 1.1 million sq. ft. The LEED-certified building in Gachibowli will house 2,500 additional employees. This is already Microsoft's largest R&D hub outside its US headquarters and the inauguration of the new campus further consolidates Hyderabad’s position as the leading global IT powerhouse.

Microsoft employs over 20,000 professionals in India, over half of which work in Hyderabad. With the launch of the new building, Microsoft plans to hire another 4,800 employees, according to an official release.

On this occasion, Microsoft also announced another landmark initiative in partnership with Govt of Telangana to impart AI training to over 1.2 lakh people in the state. Under the first program ADVANTA(I)GE TELANGANA, Microsoft is launching an AI Foundations Academy to introduce AI education to 500 government schools benefiting 50,000 students.

Additionally, the AI industry pro program will upskill 20,000 industry professionals across Telangana, the government said. The third program AI-Govern initiative will further train 50,000 government officials in critical areas such as digital productivity, Generative AI, and cybersecurity.

Also, Microsoft will establish and operate an AICoE in collaboration with the Government of Telangana and other stakeholders. This CoE will establish cloud-based infrastructure for AI development, including a centralized AI Knowledge Hub. This repository would compile research, case studies, and best practices benefiting thousands of emplyees across the state.

To support the growth of AI, Microsoft has further announced doubling of its investments in hyperscale AI data centers in the state with an additional investment of ₹15,000 crore in the coming years. This will make Hyderabad region one of largest data hubs of Microsoft globally, the government said.

These initiatives are in line with the CM’s priority to make Hyderabad an AI Hub in the country and complement state’s initiative AI city and AI roadmap. An MoU encompassing all the above initiatives was signed between the company and the ITE&C department and exchanged in the presence of CM and IT Minister, and this is a direct outcome of the recent meeting between CM Revanth Reddy and Microsoft CEO Satya Nadella in January 2025, where they agreed to work closely to modernize government IT and cloud infrastructure and fast track the development and adoption of AI solutions.

Congratulating Microsoft on the occasion, the CM remarked, “Hyderabad and Microsoft have grown together, and as a proud representative of this state, I can say with certainty this is just the beginning. The world looks at Hyderabad today as a technology powerhouse, a city that nurtures innovation and attracts global talent. And with partners like Microsoft, the future is even brighter.”

Addressing the gathering, the Minister for It & Industries, Sridhar Babu said, “The new campus and the several AI related initiatives launched by Microsoft reflects their commitment to sustainability, inclusivity and innovation in the state.”

Rajiv Kumar, Managing Director and President, Microsoft India Development Centre, who was also present at the event remarked, “The new building 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-first nation. This expansion will provide state-of-the-art infrastructure to our teams, enabling them to innovate and develop next-generation AI products. We are grateful to Chief Minister Revanth Reddy and Minister for Information Technology, D. Sridhar Babu for gracing today’s event with their presence. We look forward to our partnership to accelerate digital transformation and AI skilling opportunities across the state.”