In a major step toward strengthening digital infrastructure across Asia, Microsoft has partnered with Singapore-based Lightstorm and several global telecom companies to build a 3,600-kilometre undersea cable connecting India, Malaysia, and **Singapore>. The project aims to support the rapidly growing demand for artificial intelligence (AI), cloud computing, and hyperscale data services across the region.
Named I-2SEA, the new submarine cable system is being developed by a consortium that includes Tata Communications, Singapore Telecommunications, ASEAN Cableship, and NEC Corporation, along with Microsoft and Lightstorm.
The companies said the I-2SEA cable will provide high-capacity, low-latency connectivity to meet the growing needs of AI-driven applications, cloud platforms, enterprise workloads, and hyperscale data centers. However, the consortium has not disclosed the total investment planned for the project.
Landing Station in Andhra Pradesh
The undersea cable will span approximately 3,600 kilometres and will include a landing station at Machilipatnam. The coastal city has emerged as an important digital infrastructure hub after Meta and Alphabet announced plans to establish data centers in the region.
According to Amajit Gupta, the I-2SEA cable is expected to become operational in the fourth quarter of 2029.
Boosting AI and Cloud Infrastructure
Lightstorm currently connects 19 AI and cloud zones across India through its terrestrial fiber network. With the addition of the I-2SEA cable, the company expects to expand connectivity to 29 AI and cloud zones, significantly improving digital infrastructure for enterprises, cloud providers, and technology companies.
The project comes amid a surge in demand for AI computing, cloud services, and large-scale data centers across India. As businesses increasingly adopt artificial intelligence and digital technologies, robust international connectivity has become essential for handling growing internet traffic and cloud workloads.
Industry estimates suggest India's operational data center capacity could double from the current 1.4 gigawatts by 2027, with the potential to increase nearly five-fold by 2030 if planned projects are implemented on schedule.
Growing Importance of Undersea Cables
Submarine cables form the backbone of the global internet, carrying nearly 95% of international internet traffic. India currently has 17 active submarine cable systems with a combined potential capacity of around 960 terabits per second, while more than 10 additional cable projects have already been announced to support the country's expanding digital economy.
The new I-2SEA cable is expected to improve connectivity between India and Southeast Asia, enhance network resilience, reduce latency, and strengthen the region's cloud and AI ecosystem.
Lightstorm Plans India IPO
Apart from expanding its digital infrastructure business, Lightstorm is also preparing for its next phase of growth. CEO Amajit Gupta said the company plans to launch an initial public offering (IPO) in India around mid-2027. While financial details were not disclosed, previous media reports suggested the company was targeting a valuation of up to $1.5 billion.
With technology giants investing heavily in AI infrastructure and cloud computing, projects like I-2SEA are expected to play a critical role in supporting India's digital transformation and strengthening connectivity across the Asia-Pacific region.
Inputs from Agency.