Microsoft, Lightstorm Plan India-SEA Subsea Cable
A consortium comprising Microsoft, telecom infrastructure startup Lightstorm, Tata Communications, Singapore Telecommunications, ASEAN Cableship, and Japan's NEC Corporation plans to build a new undersea cable linking India with Malaysia and Singapore.
Strengthening digital connectivity as demand for artificial intelligence (AI) and cloud services continues to surge across the region. India is among the world's fastest-growing data center markets, driving investments in high-capacity digital infrastructure.
The consortium announced on Thursday that it will develop the I-2SEA submarine cable system to support AI, cloud computing, and hyperscale workloads. However, the companies did not disclose the project's investment value or financial details.
The 3,600-km cable will feature landing stations in Machilipatnam, Andhra Pradesh, a location emerging as a key technology hub where Meta and Alphabet have announced data center investments. According to Lightstorm Group CEO and Managing Director Amajit Gupta, the cable is expected to become operational in the fourth quarter of 2029.
Lightstorm, backed by I Squared Capital, currently connects 19 AI and cloud regions across India through its terrestrial fiber network. Gupta said the I-2SEA project will expand that footprint to 29 regions, improving connectivity and supporting growing enterprise and hyperscale demand.
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India's data center sector is expected to witness significant expansion. A Macquarie Equity Research report published last October estimated the country's operational data center capacity could reach 2.8 gigawatts by 2027 through ongoing projects. If proposed developments move ahead quickly, that capacity could increase fivefold by 2030.
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Submarine cables carry roughly 95percent of global internet traffic, making them essential to international communications.
According to telecommunications research firm TeleGeography, India currently has 17 operational submarine cables with a combined design capacity of 960 terabits per second. At least 10 additional cable projects have also been publicly announced.
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Gupta also said Lightstorm plans to launch an initial public offering in India by mid-2027. He declined to share further details, though reports in March suggested the company was targeting a valuation of up to $1.5 billion.