If industry sources are to be believed, Microsoft is likely to invest ₹1,772 crore (about $212 million) to set up India’s largest quantum computing facility in Amaravati.
The facility will be spread over an area of 4,000 sq ft. “A formal MoU between the A.P. government and the Microsoft team is likely to be signed during the 30th CII Partnership Summit to be held in Visakhapatnam on November 14-15,” CII sources told The Hindu on Tuesday.
The Amaravati facility is planned to have a 1,200-qubit system and be part of a new “Quantum Valley” in the southern Telugu State of A.P., adding that this Microsoft presence in the valley will accelerate further, the sources added.
The Quantum Valley project is designed to promote deep technological research and innovation, and other partners such as IBM and Fujitsu are also participating in it.
Sources said that Microsoft is also having a partnership with A.P. government to train two lakh youth in AI and advanced technology skills with special programmes. The company is also investing in land near Amaravati to support these initiatives.
Microsoft acquired 25 acres of land near Nandigama in September 2024 to support its operations in the State.
The programmes will involve training 500 teachers and 10,000 engineering students from rural colleges. Additional training is planned for 50,000 individuals and 30,000 through rural ITI colleges to improve public services.
IT Park Association Rushikonda vice president O. Naresh Kumar told The Hindu that they welcome Microsoft and Fujitsu investments in Amaravati.
This is a big boost for Quantum Valley. Earlier, IBM, TCS and L&T were the first to plan a super quantum computer in Quantum Valley. Microsoft’s presence will boost the ecosystem and more companies are expected to come soon, he said.
“We have seen how Hyderabad has transformed after ISB and Microsoft set up shop there. Now with 4 new ports, 7 new airports and a 1053 km coastline with direct submarine cables attracting a $15 billion Google AI data hub in Visakhapatnam, the entire IT ecosystem will be re-evaluated and we can see a huge response from major players in the coming days if everything goes rapidly and smoothly as per plans,” added Mr. Naresh.
Published – November 11, 2025 05:46 pm IST
