Tata Communications to Invest $450 Mn in India's AI Network

Tata Communications plans to invest $400-450 million in a 10,000-km AI-ready fibre network across India, connecting data centres and technology hubs to support rising demand for cloud computing and AI services.

Tata Communications plans to invest $400 million to $450 million over the next three to five years to develop a 10,000-kilometre fibre network connecting key artificial intelligence (AI) and data centre hubs across India. The project is designed to meet rising demand for high-speed, reliable and low-latency connectivity as businesses expand their AI and cloud computing operations.

The proposed network, described by the company as an “AI superhighway,” will add approximately 7.2 petabytes of capacity, according to Business Standard. It will connect data centres, hyperscale cloud providers, AI platforms, global capability centres (GCCs) and large enterprises that require high-capacity data transmission. The investment will be funded through operating cash flows.

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The rollout will take place in three phases. The first phase will cover the Mumbai-Pune-Hyderabad-Chennai corridor, linking major technology centres and data infrastructure hubs. The second phase will extend connectivity towards Hyderabad and Visakhapatnam, alongside Chennai. The third phase will expand the network to Bhubaneswar, Visakhapatnam, Bengaluru, Chennai, Mumbai, Ahmedabad and Jamnagar, including emerging data centre markets and locations such as GIFT City.

Tata Communications expects the data centre-to-data centre connectivity market in India to exceed $1 billion over the medium term. The company anticipates a meaningful contribution to revenue from the new infrastructure around the 2028-29 financial year, as fibre routes become operational and capacity is made available to customers.

The investment comes amid growing demand for infrastructure capable of supporting generative AI, cloud computing and other data-intensive applications. These workloads require greater bandwidth, low latency and resilient network routes to transfer data between computing facilities. Dedicated fibre infrastructure is intended to help meet these requirements while enabling customers to scale their operations.

Tata Communications already operates a global network spanning more than 500,000 kilometres of subsea optical fibre and over 200,000 kilometres of terrestrial fibre. The new domestic network will complement this infrastructure and connect Indian data centre hubs with international cable landing stations and global markets. In June 2026, the company also announced investments in subsea cable systems connecting Mumbai and Chennai with Singapore.

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The expansion reflects the growing importance of connectivity infrastructure alongside data centre capacity in India's AI ecosystem. By linking computing hubs, cloud providers and enterprise customers, Tata Communications aims to strengthen its position in the expanding market for AI-ready digital infrastructure.