Microsoft-Led Consortium to Build 3,600-km Undersea Cable Connecting India, Malaysia and Singapore to Boost AI and Cloud Infrastructure

Microsoft-Led Consortium to Build 3,600-km Undersea Cable Connecting India, Malaysia and Singapore to Boost AI and Cloud Infrastructure

Microsoft, Lightstorm, Tata Communications and global telecom partners will build the 3,600-kilometre I-2SEA undersea cable linking India, Malaysia and Singapore. The project aims to strengthen artificial intelligence, cloud computing and hyperscale infrastructure, with operations expected to begin in the fourth quarter of 2029 while supporting India's rapidly expanding data centre ecosystem.

 

A consortium led by Microsoft and telecom startup Lightstorm has announced plans to develop a new undersea cable connecting India with Malaysia and Singapore, marking a significant step in strengthening digital connectivity as global technology companies intensify investments in artificial intelligence and cloud infrastructure across India, one of the world's fastest-growing data markets.

The consortium includes Tata Communications, Singapore Telecommunications, Singapore's ASEAN Cableship and Japan's NEC Corporation. The companies confirmed on Thursday that they will jointly construct the I-2SEA submarine cable to support the growing demand for artificial intelligence, cloud computing and hyperscale workloads. However, the consortium did not disclose the size of the investment for the project.

The I-2SEA cable network will extend approximately 3,600 kilometres and will feature landing stations in Machilipatnam in the southern Indian state of Andhra Pradesh. The location has gained strategic importance after Meta and Alphabet announced plans to establish data centres there.

Lightstorm Group Chief Executive Officer and Managing Director Amajit Gupta told Reuters that the undersea cable is expected to become operational during the fourth quarter of 2029. He said the company currently connects 19 artificial intelligence and cloud zones across India through its terrestrial fibre cable network. With the commissioning of the new submarine cable, that number is expected to increase to 29, significantly expanding the country's digital infrastructure.

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India's data centre sector is witnessing rapid growth driven by rising demand for cloud services and artificial intelligence. According to a report published by Macquarie Equity Research in October last year, the country's operational data centre capacity could double from the current 1.4 gigawatts by 2027 based on projects already under construction. The report further stated that the capacity could increase five-fold by 2030 if planned projects are implemented on schedule.

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Undersea cable systems remain the backbone of global digital communication, carrying nearly 95 percent of the world's internet traffic. According to telecommunications research firm TeleGeography, India currently operates 17 active submarine cables with a maximum potential capacity of 960 terabits per second. The firm also noted that at least 10 additional submarine cable projects have already been publicly announced, reflecting the country's accelerating digital expansion.

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Separately, Amajit Gupta said Lightstorm is planning to launch its initial public offering in India during the middle of 2027, although he did not disclose further details regarding the proposed listing. In March, media reports stated that the company was seeking a valuation of up to 1.5 billion dollars.

The I-2SEA project represents another major milestone in India's expanding digital ecosystem, reinforcing the country's position as a key global destination for artificial intelligence, cloud computing and data infrastructure while strengthening high-capacity international connectivity across Asia.

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