The construction of a new undersea fiber-optic cable linking India with Malaysia and Singapore is being planned by a multinational consortium that includes Microsoft and the telecommunications startup Lightstorm. This infrastructural initiative was announced on Thursday amid intensifying competition among global technology conglomerates to expand artificial intelligence and cloud computing infrastructure within India, which is currently recognized as one of the fastest-growing data markets in the world. In addition to Microsoft and Lightstorm, the consortium is comprised of several prominent regional entities, including Tata Communications, Singapore Telecommunications, Singapore’s ASEAN Cableship, and Japan’s NEC Corporation. The new subsea network, which has been designated as the I-2SEA cable, is being designed specifically to accommodate the substantial bandwidth demands of artificial intelligence applications, cloud environments, and hyperscale processing workloads. However, specific financial metrics regarding the total size of the investment were withheld by the participating companies.
A total distance of 3,600 kilometers will be spanned by the maritime network, with landing stations scheduled to be established in Machilipatnam, a coastal city situated in the southern Indian state of Andhra Pradesh. The selection of this specific location is considered highly strategic, as significant data center developments have previously been announced in the region by major technology firms such as Meta and Alphabet. It was disclosed by Amajit Gupta, the Chief Executive Officer and Managing Director of the Lightstorm Group, during an interview that the I-2SEA cable system is projected to become fully operational by the fourth quarter of 2029. Lightstorm, an enterprise backed by the private equity firm I Squared, currently facilitates the interconnection of 19 distinct artificial intelligence and cloud zones across the Indian subcontinent through its existing terrestrial fiber-optic networks. It was further explained by the Chief Executive Officer that the integration of the upcoming subsea network is anticipated to elevate the total number of connected technology zones to 29.
The necessity for such robust digital pipelines is underscored by the exponential growth projections characterizing the Indian digital infrastructure sector. It was estimated in a comprehensive research report published by Macquarie Equity Research that the operational data center capacity within India, which currently stands at approximately 1.4 gigawatts, could potentially double by the year 2027 based on projects that are currently under active construction. Furthermore, a five-fold capacity increase is projected by the year 2030 if the development of planned infrastructure projects is successfully expedited. Because approximately 95 percent of global internet traffic is transported via undersea telecommunication links, the deployment of subsea cables remains a critical component of national and international data strategies. According to data compiled by TeleGeography, a specialized telecommunications research firm, 17 active submarine cables are currently maintained by India, providing a maximum potential throughput of 960 terabits per second. The rapid scaling of this capacity is further demonstrated by the fact that at least 10 additional subsea cable systems have already been publicly announced.
In a separate corporate development, intention was signaled by Lightstorm to pursue a public listing on the Indian stock exchanges, with an initial timeline targeted for mid-2027. While further transactional details regarding the listing structure were not disclosed by corporate leadership, previous media disclosures had indicated that a corporate valuation of up to $1.5 billion was being sought by the company. Ultimately, the coordination of this high-capacity maritime network reflects the broader structural shift toward localized data processing and the rapid fortification of connectivity pathways between South Asia and major Southeast Asian technology hubs.
