New Delhi, Aug. 6 -- Microsoft launched its largest India data center in Hyderabad on Thursday and has signed up Adani Group and HDFC Bank among early users as it races rivals for the country's fast-growing AI market.

The India South Central facility brings Microsoft's cloud regions in India to four, adding to existing centers in Pune, Chennai and Mumbai, and cementing its position as the country's largest cloud-computing provider.

The Windows maker has committed about $20.5 billion to expand its India opreations, betting on a market of more than 1 billion internet users and one of the world's deepest pools of tech talent.

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Azure, Microsoft's cloud-computing arm, has posted double-digit revenue increases in India...