The Modi government granted a 21-year tax holiday for cloud services provided globally from Indian data centres, making Microsoft eligible to operate Azure services tax-free on foreign revenue generated through these facilities. Microsoft Azure can leverage this infrastructure expansion and tax exemption to reduce operating costs, enhance pricing competitiveness for enterprise and government clients, and accelerate deployment of high-performance computing services in India. Scaling data centre capacity may strain India’s power and water infrastructure, and long-term tax benefits depend on policy stability; any regulatory shifts or grid reliability issues could impact Microsoft’s operational plans. Adani Group committed to invest $100 billion by 2035 in AI-ready data centres across India, initially allocating $1 billion for development and dedicating $55 billion to renewable energy generation to expand capacity from 2 GW to 5 GW.