Key Investment Details

  • Investment Amount: ₹4,350 crores (approximately USD 400-450 million) in capital expenditure
  • Project Scope: Construction of approximately 10,000 kilometers of new AI-ready connectivity infrastructure across India
  • Network Capacity Addition: 6 Pbps of additional network capacity
  • Implementation Timeline: FY 2030 to FY 2036
  • Financing Mode: Through operating cash flows

Existing Capacity Status

  • Current Capacity: 1.25 Pbps of network capacity
  • Current Utilization: Approximately 70-80%

Strategic Rationale and Market Context

The investment aims to create a high-speed, low-latency network fabric connecting India's key AI data-center corridors. India's data center industry is experiencing significant growth driven by cloud adoption, AI deployment, data localization requirements, and enterprise demand for resilient digital infrastructure. The company estimates the India data center-to-data center connectivity market could exceed USD 1 billion over the medium term.

Implementation Phases

The expansion will be executed in three phases:

1. First Phase: Mumbai-Pune-Hyderabad-Chennai corridor (identified as one of India's most important AI and hyperscale growth routes)

2. Subsequent Phases: Expansion into emerging East Coast and Western India data centre ecosystems including Vizag, Bhubaneswar, Jamnagar, GIFT City and other strategic locations

Target Customer Base

The infrastructure is designed for:

  • Global hyperscalers
  • AI platforms
  • Neo-cloud providers
  • Enterprises
  • Digital-native businesses
  • Global Capability Centres (GCCs)
  • Emerging cloud platforms

Integration with Global Network

The AI super highway will be integrated with Tata Communications' global network backbone, which includes:

  • 500,000+ km of subsea optical fiber
  • 200,000+ km of terrestrial fiber
  • Recent enhancements including new subsea cable system between Mumbai & Singapore (planned June 2026)
  • Consortium investment in Chennai-Singapore subsea cable system (expected Ready for Service Q4 2029)
  • Integration of TGN IA2 submarine cable in 2025

Management Commentary

Ganesh Lakshminarayanan, MD and CEO: "We are building on our existing strengths to create one of the most comprehensive data centre connectivity platforms in the market. A growing proportion of our expansion is being driven by anchor customer commitments and contracted demand."

Rupesh Chokshi, Chief Product and Technology Officer: "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."

Forward-Looking Statements

The document contains cautionary statements noting that forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially. The company disclaims any obligation to update forward-looking statements.