US: A consortium led by Microsoft and Lightstorm will build a new undersea cable connecting India with Malaysia and Singapore to support growing AI and cloud infrastructure demand.
The consortium includes Tata Communications, Singapore Telecommunications (Singtel), Singapore-based ASEAN Cableship, and Japan’s NEC Corporation.
Named I-2SEA, the submarine cable system will span approximately 3,600 kilometers and is intended to provide additional network capacity for AI, cloud, and hyperscale data workloads.
The cable will have a landing station at Machilipatnam in Andhra Pradesh, strengthening connectivity between India and Southeast Asia. The location has also attracted investments from global technology companies, including Meta and Alphabet, for planned data center developments.
According to Amajit Gupta, Chief Executive Officer and Managing Director of Lightstorm Group, the cable is expected to become operational in the fourth quarter of 2029.
Lightstorm currently connects 19 AI and cloud zones across India through its terrestrial fiber network. Gupta said the addition of the new submarine cable is expected to increase the number of connected AI and cloud zones to 29.
Growing Data Centre Capacity
The project comes as India continues to expand its digital infrastructure to meet increasing demand for cloud services and artificial intelligence applications.
According to a report by Macquarie Equity Research published last year, India’s operational data center capacity stands at 1.4 gigawatts and could double by 2027 based on projects currently under construction. The report also estimates that capacity could increase fivefold by 2030 if planned projects are completed.
Expanding India’s International Connectivity
Submarine cables carry around 95 percent of global internet traffic and play an important role in international digital communications.
According to telecommunications research firm TeleGeography, India currently has 17 active submarine cable systems with a combined potential capacity of 960 terabits per second. The firm also estimates that at least 10 additional submarine cable projects have been publicly announced.
Separately, Gupta said Lightstorm plans to launch an initial public offering (IPO) in India in mid-2027 but did not provide further details. The company, backed by I Squared Capital, had reportedly sought a valuation of up to $1.5 billion earlier this year.
