Key facts
- Microsoft is part of a consortium building a new undersea cable linking India with Malaysia and Singapore.
- The I-2SEA cable aims to support AI, cloud, and hyperscale workloads.
- The network will be 3,600 kilometers long with landing stations in Machilipatnam, India.
- The cable is anticipated to be operational in the fourth quarter of 2029.
- Lightstorm Group, a member of the consortium, plans to list in India in mid-2027.
Microsoft is collaborating with a consortium of Asian telecommunications companies, including Lightstorm, Tata Communications, and Singapore Telecommunications, to construct a new undersea cable named I-2SEA. This initiative aims to bolster the burgeoning AI and cloud infrastructure in India, a rapidly expanding data market.
The cable network will span 3,600 kilometers, connecting India to Malaysia and Singapore, with landing stations planned for Machilipatnam in India's Andhra Pradesh state, a location also chosen by Meta and Alphabet for their data centers. The project is designed to support AI, cloud, and hyperscale workloads.
Lightstorm Group CEO Amajit Gupta stated that the I-2SEA cable is expected to become operational by the fourth quarter of 2029. Lightstorm currently connects 19 AI and cloud zones across India via terrestrial fiber networks and anticipates this new undersea cable will increase that number to 29.
India's data center capacity is projected to significantly increase in the coming years. Macquarie Equity Research reported in October that operational capacity could double by 2027 and increase five-fold by 2030 if planned projects proceed quickly. Undersea cables are critical for global internet traffic, carrying approximately 95% of it. India presently has 17 active submarine cables with a combined capacity of 960 terabits per second, and at least 10 more are planned.
In a separate development, Lightstorm is planning an initial public offering in India by mid-2027, according to Gupta, though further details were not disclosed. A media report in March indicated the company was seeking a valuation of up to $1.5 billion.