Microsoft has joined forces with Singapore telecom startup Lightstorm and other major partners in a consortium to develop a 3,600 km undersea cable connecting India with Malaysia and Singapore, aiming to boost AI, cloud, and hyperscale infrastructure in one of the world’s fastest-growing data markets.
- 3,600 km undersea cable linking India, Malaysia, Singapore
- Supports AI, cloud, hyperscale workloads across 29 Indian zones
- Operational target set for Q4 2029
What happened
Microsoft has entered a partnership with Lightstorm, a Singapore-based telecom startup, along with other key players including Tata Communications, Singapore Telecommunications, ASEAN Cableship, and Japan's NEC Corporation, to build a new undersea cable named I-2SEA. This cable will connect India with Malaysia and Singapore to expand digital infrastructure capabilities.
The cable will stretch approximately 3,600 kilometers with landing stations at Machilipatnam in Andhra Pradesh, India. It is designed to specifically support AI, cloud computing, and hyperscale workloads, addressing rising demands from technology giants and cloud service providers operating in the region.
Why it matters
India is witnessing rapid growth in data center demand with projections to double operational capacity by 2027 and potentially increase five-fold by 2030 as projects accelerate. The I-2SEA cable will be a critical enabler for the region’s expansion by improving high-capacity connectivity needed for advanced technology services.
Since undersea cables carry the bulk of global internet traffic — about 95% — expanding submarine cable infrastructure is essential to support the growing digital ecosystem. Increasing connections and capacity also bolster India’s position as a major digital hub serving Southeast Asia and beyond.
What to watch next
The consortium has not yet disclosed the total investment size for the I-2SEA cable project. Industry stakeholders will be monitoring funding arrangements, construction progress, and how quickly the cable can meet the expected operational launch in the fourth quarter of 2029.
Additionally, Lightstorm plans to list on the Indian stock market by mid-2027, seeking a valuation up to $1.5 billion. This public offering could provide financial muscle for ongoing and future infrastructure projects, further accelerating digital connectivity enhancements within India and its neighboring markets.