A coalition of technology and telecommunications giants is moving forward with plans to construct a new undersea cable system connecting India with Malaysia and Singapore, as companies race to build out artificial intelligence and cloud infrastructure in one of the world’s fastest-expanding data markets.
The consortium behind the project includes Microsoft, telecom startup Lightstorm, Tata Communications, Singapore Telecommunications, Singapore’s ASEAN Cableship, and Japan’s NEC Corporation. Together, they announced plans Thursday to build the I-2SEA cable, which is intended to handle AI, cloud, and large-scale computing demands. The companies did not reveal how much money is being invested in the project.
The cable system will cover 3,600 kilometers and include landing stations in Machilipatnam, located in the southern Indian state of Andhra Pradesh — the same area where Meta and Alphabet have already announced plans for data centers.
Lightstorm Group CEO and Managing Director Amajit Gupta told Reuters the cable is expected to go live in the fourth quarter of 2029. He added that the company currently connects 19 AI and cloud zones across India through land-based fiber networks, and the new undersea cable would expand that number to 29.
The demand for such infrastructure is significant. A report from Macquarie Equity Research issued last October projected that India’s operational data center capacity — currently at 1.4 gigawatts — could double by 2027 based on projects already under construction, and grow five times larger by 2030 if planned projects are accelerated.
Undersea cables are the backbone of global internet connectivity, carrying approximately 95% of the world’s internet traffic. India currently has 17 active submarine cables capable of handling up to 960 terabits per second, with at least 10 more publicly announced, according to telecommunications research firm TeleGeography.
In a separate development, Gupta said Lightstorm is also planning to list its shares on an Indian stock exchange around mid-2027, though he offered no further details. A media report from March indicated the company was seeking a valuation of as much as $1.5 billion.
