Microsoft partners with Singapore's Lightstorm to build a subsea cable connecting India and Southeast Asia

Source: Global Market Briefing

As technology companies race to expand artificial intelligence and cloud infrastructure in India—one of the world's fastest-growing data markets—a consortium consisting of Microsoft MSFT.O and telecom startup Lightstorm plans to lay a new submarine cable connecting India, Malaysia, and Singapore.

Other consortium members include Tata Communications TATA.NS, Singtel STEL.SI, ASEAN Cableship from Singapore, and NEC from Japan. These companies announced on Thursday that they would deploy the I-2SEA submarine cable to support artificial intelligence, cloud computing, and hyperscale workloads.

The parties did not disclose further details, including investment size.

The network will have a total length of 3,600 kilometers, with a landing station in Machilipatnam, Andhra Pradesh, southern India. Meta and Alphabet had previously announced plans to build data centers at the location.

Lightstorm Group CEO and Managing Director Amajit Gupta said in an interview that the cable is expected to be operational in the fourth quarter of 2029.

Gupta stated that, supported by I Squared, the company currently connects 19 artificial intelligence and cloud computing regions across India via terrestrial fiber networks, and with the completion of the new network, this number is expected to increase to 29.

According to a report released by Macquarie Equity Research in October last year, based on ongoing project estimates, India's operational data center capacity is expected to double from the current 1.4 GW by 2027; if planned projects are accelerated, capacity could increase fivefold by 2030.

TeleGeography, a telecommunications research firm, stated that submarine cables carry about 95% of global internet traffic. India currently has 17 operational submarine cables with a maximum potential capacity of 960 terabits per second, with at least 10 more publicly announced.

In addition, Gupta said Lightstorm plans to list in India by mid-2027 but did not disclose further details. According to media reports (link), the company sought a valuation of up to $1.5 billion in March this year.