India, Sept. 23 -- Microsoft is evaluating potential locations in North and West India for future data-centre capacity as demand for cloud computing and artificial intelligence grows. While no specific site or timeline has been announced, the assessment points to a bigger infrastructure question for India: where should the next wave of computing capacity be built?

The Microsoft data centre expansion assessment is being shaped by customer demand, power availability, network latency and seismic conditions. Together, these factors show how AI growth is making physical infrastructure just as important as the software running on it.

Generative AI is increasing computing requirements across businesses, technology companies and digital platfor...