Tata Communications plans to invest ₹4,350 crore in a Tata AI network spanning roughly 10,000 kilometers across India, connecting data-center corridors and artificial intelligence hubs. The company announced the project on October 26, 2026, with expansion planned in three phases between FY30 and FY36.

Key Takeaways

  • The company plans to fund the investment through operating cash flows.
  • The proposed network would add about 6 petabits per second of capacity.
  • The first phase will focus on the Mumbai–Pune–Hyderabad–Chennai corridor.

Tata AI network capacity and funding

The proposed capacity would be added to Tata Communications’ existing network capacity of 1.25 petabits per second, which is currently about 70% to 80% utilized, the company said in a regulatory filing. The investment is intended to meet demand for high-capacity, low-latency connections between data centers.

Chief Executive Ganesh Lakshminarayanan said a growing share of the company’s expansion was driven by anchor customer commitments and contracted demand. He also said 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.

Routes and customers

The initial corridor will connect Mumbai, Pune, Hyderabad and Chennai, a route the company identifies as important for AI and hyperscale data centers. Later phases are planned to reach emerging data-center ecosystems in eastern and western India, including Vizag, Bhubaneswar, Jamnagar and GIFT City.

The network is also planned to link data-center clusters with international cable landing stations and Tata Communications’ global backbone. It is being designed for customers including global hyperscalers, AI platforms, neocloud providers and enterprises.

Tata Communications said it will continue expanding its existing national long-distance and metro networks to support current enterprise and data-center connectivity needs.

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