The company said local cloud facilities will ensure data sovereignty within India, lower latency and geo redundancy.
“Microsoft is deeply committed to helping people and organizations thrive in our mobile-first and cloud-first world – that’s why we are proud to offer our commercial cloud services through datacenters in India,” said Satya Nadella, CEO of Microsoft. “With more than 250 million Indians using Internet-connected devices today, there is incredible demand and opportunity for India with Microsoft’s cloud services.”
http://www.microsoft.com/en-in/news/Press/2014/Sep14/MicrosoftAnnouncesCo.aspx