This article first appeared on GuruFocus .
Microsoft ( NASDAQ:MSFT ), the cloud and enterprise-AI company, added a fourth Indian cloud region Monday as its Hyderabad-based India South Central facility went live. Shares were essentially flat. The valuation picture is more interesting: the stock trades 15.83% below its $586.29 GF Value estimate, leaving a sizable gap between the current market price and GuruFocus' fair-value benchmark.
The new region brings three availability zones together with Azure and Microsoft Foundry services, giving Microsoft another base for enterprise workloads and AI deployment in one of its fastest-growing strategic markets. Adani Group, Bajaj Finserv, HDFC Bank and PB Pay are among the early customers named by Microsoft, while the company is pitching Hyderabad as infrastructure not just for India but for South Asia and other developing markets.
The headline number still needs perspective. Microsoft's $20.5 billion investment commitment applies to its broader India expansion rather than this single data-center region. Zero-water cooling directly addresses a major local infrastructure constraint, but Microsoft has not disclosed the site's megawatt capacity, server count or standalone revenue target. The next test is utilization: turning more geographic coverage into enough enterprise and AI demand to justify the capital going in.
