HYDERABAD: Chief Minister A Revanth Reddy on Thursday announced that Microsoft will set up an AI centre in collaboration with the Telangana government to develop cloud-based infrastructure, including an AI knowledge hub.
Revanth Reddy, along with IT and Industries Minister D Sridhar Babu, inaugurated Microsoft’s new office building at Gachibowli. The state-of-the-art 1.1 million sqft LEED-certified building will house 2,500 additional employees.
Speaking on the occasion, Revanth Reddy said, “It is imperative to acknowledge that the future belongs to artificial intelligence and Microsoft and the state government are partners in launching ADVANTA(I)GE TELANGANA, which includes an AI Foundation Academy. With this partnership, Telangana and Microsoft will introduce AI education in 500 government schools and also use AI for good governance and public services.”
The CM described the opening of another new facility by Microsoft in Hyderabad as a proud moment. Having the second office building of the company in Hyderabad is a milestone in the development of the IT sector, he added.
Microsoft expansion will create more jobs for locals: CM
“The world’s biggest company, Microsoft, has been maintaining a close and long association with Hyderabad. Microsoft India completed 25 years recently. The IT giant has created a global impact and developed innovations from Hyderabad,” he observed.
The expansion of Microsoft will create more job opportunities for the youth in Hyderabad, he said and added the investment will strengthen startup ecosystem and provide mentorship, AI tools and access to a global network.
Meanwhile, Sridhar Babu said that the new campus and the several AI-related initiatives launched by Microsoft reflect their commitment to sustainability, inclusivity and innovation in the state.
Meanwhile, the Chief Minister’s Office said that half of 20,000 workforce employed by Microsoft in India are working in Hyderabad. With the launch of the new building, Microsoft plans to hire 4,800 more employees.
On this occasion, Microsoft also announced another landmark initiative in partnership with the state government to impart AI training to over 1.2 lakh persons in the state. Under the first program ADVANTA(I)GE TELANGANA, Microsoft is launching an AI Foundations Academy to introduce AI education in 500 government schools benefiting 50,000 students. Additionally, the AI-industry Pro programme will upskill 20,000 industry professionals across Telangana. The third programme, 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 AI CoE in collaboration with the government of Telangana and other stakeholders. This CoE will establish cloud-based infrastructure for AI development, including a centralised AI Knowledge Hub. This repository will compile research, case studies, and best practices benefiting thousands of employees across the state.
To support the growth of AI, Microsoft has further announced doubling of its investments in hyperscale AI data centres in the state with an additional investment of Rs 15,000 crore in the coming years. This will make Hyderabad region one of the largest data hubs of Microsoft globally.
The CMO said: “These initiatives are in line with the CM’s priority to make Hyderabad an AI hub in the country and complement state’s AI city and AI roadmap initiatives. An MoU encompassing all the above initiatives was signed between the company and the IT and industries department and exchanged in the presence of the chief minister and the IT minister, and this is a direct outcome of the recent meeting between CM and Satya Nadella in January 2025, where they agreed to work closely to modernise government IT and cloud infrastructure and fast-track the development and adoption of AI solutions.”