Tata Communications to Invest $450 Million in AI Fibre Network
Tata Communications plans to spend nearly $450 million to create a high-speed, low-latency AI network infrastructure linking major AI data-center hubs in India.
The firm plans to construct approximately 10,000 kilometers of new long-distance fiber throughout India, establishing one of the nation’s largest connectivity networks prepared for AI. Referred to as the AI superhighway, the network accommodates future AI workloads.
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The initial stage of the program will concentrate on the Mumbai-Pune-Hyderabad-Chennai corridor, a key route for AI and hyperscale development in India. Future stages will enhance connectivity in the developing data centre ecosystems of the East Coast and Western India, encompassing Vizag, Bhubaneswar, Jamnagar, GIFT City, and additional key areas.
Tata Communications will facilitate seamless connectivity between India and prominent global AI centers by connecting key AI corridors and data center clusters with international cable landing stations, establishing India as a strategic gateway in the worldwide digital infrastructure framework.
Commenting on the investment Ganesh Lakshminarayanan, MD and CEO, Tata Communications, says, “We are excited about the opportunity in the India data centre-to-data centre connectivity, which we believe could evolve into a market exceeding $1 billion over the medium term”.
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“With our planned investments, we are building on our existing strengths to create one of the most comprehensive data centre connectivity platforms in the market, positioning us to capture this significant growth opportunity. As we scale, a growing proportion of our expansion is being driven by anchor customer commitments and contracted demand, providing a strong foundation for sustainable growth, efficient capital deployment and long-term value creation”.
Tata Communications aims for substantial growth in India's data centre sector, fueled by the rapid adoption of cloud services, the deployment of AI, rising data localisation needs, and heightened enterprise demand for robust, high-capacity digital infrastructure.
Rupesh Chokshi, Chief Product and Technology Officer, Executive Vice President & Global Business Head – Network Services, Tata Communications says, “The AI economy needs more than compute. It needs a network built for speed, scale and resilience. Our AI Network Fabric will give our global customers the ultra-low-latency, high-capacity and resilient connectivity they need to scale AI with confidence.”
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The investment seeks to bolster India’s role as a worldwide AI and cloud connectivity hub, aiming to address the extraordinary demand from hyperscale and neocloud providers, AI tasks, digital-native enterprises, Global Capability Centres (GCCs), companies, and new cloud platforms.
It will allow global hyperscalers, digital platforms, and multinational companies to expand their operations in India.
Tata Communications will persist in aiding current enterprise and data center connectivity needs by expanding its existing National Long Distance and metro network presence, guaranteeing ongoing assistance for current growth and creating capacity for future requirements.