Tata Communications plans to invest close to $450 million in a high-speed fiber network connecting major artificial intelligence data center corridors across India. The Tata AI network is expected to span around 10,000 kilometers and be rolled out over three to five years.

Key Takeaways

  • The first phase will prioritize a Mumbai–Pune–Hyderabad–Chennai route.
  • Tata Communications plans to fund the investment through operating cash flows.
  • The network is intended for lease to cloud providers, AI labs and enterprises.

Tata AI network rollout

The initial deployment will establish direct links between data center clusters and subsea cable landing hubs along the Mumbai–Pune–Hyderabad–Chennai corridor, said Rupesh Chokshi, Tata Communications’ chief product and technology officer.

A second phase will broaden coverage across Hyderabad, Visakhapatnam and Chennai. Later phases are planned to extend east toward Bhubaneswar and west into Gujarat, including GIFT City and Jamnagar.

ItemDetails
Planned investmentClose to $450 million
New long-haul fiberAround 10,000 kilometers
Rollout horizonThree to five years
Initial corridorMumbai–Pune–Hyderabad–Chennai
FundingTata Communications operating cash flows

Funding and commercial plans

Chokshi said Tata Communications would fund the entire investment through operating cash flows. The company intends to lease the network under long-term contracts to hyperscalers, neo-cloud providers, AI labs and enterprises.

The network will offer direct data center connections, custom service-level agreements, low latency and diverse routing, Chokshi said. The company put its planned capacity at 7.2 petabytes across the network and said it would integrate the new fiber with its existing subsea and terrestrial infrastructure.

Data center market opportunity

Chief Executive Ganesh Lakshminarayanan said Tata Communications believes India’s data center-to-data center connectivity market could exceed $1 billion over the medium term. That is a company expectation, not a reported market result.

The company also plans to expand its existing national long-distance and metro networks to support current enterprise and data center connectivity needs.

Next milestone

The first confirmed rollout phase will focus on the Mumbai–Pune–Hyderabad–Chennai corridor; the company has not specified a phase-one completion date.

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