Microsoft will spend $3 billion to expand its Azure cloud and artificial intelligence (AI) capacity in India, CEO Satya Nadella said on Tuesday, doubling down on a country with tech expertise and low costs to help turn such investments profitable.

Microsoft announced $3B investment in India for cloud and AI infrastructure, datacenters, and AI skills training.

Today, Microsoft ( MSFT, Financial) announced a massive $3 billion investment to build out its artificial intelligence (AI) and Azure cloud computing capacity in India. On Tuesday at a conference in Bengaluru, CEO Satya Nadella described it as the company's "single largest expansion" in the country.

The company plans to grow the company’s Azure cloud business in India and set up new data centers.

Microsoft Corp. plans to spend $3 billion to expand its cloud computing and artificial intelligence capabilities in India, targeting the world’s most populous country to fuel its revenue growth.

Brad Smith, the Microsoft Vice Chair and President, has revealed how the technology giant plans to move forward with its support for AI technology. The announcement comes as global investment in AI infrastructure is expected to reach $300 billion by 2026.