Microsoft Corp. (MSFT, Financials) has joined a consortium led by Singapore-based Lightstorm to build a 3,600-kilometer undersea cable linking India with Malaysia and Singapore.
The group also includes Tata Communications, Singapore Telecommunications, ASEAN Cableship and Japan's NEC. The I-2SEA cable system is being developed to support AI, cloud and hyperscale workloads as data demand rises across Asia.
The network will include landing stations in Machilipatnam, Andhra Pradesh, a location where Meta and Alphabet have announced data center projects. That gives the cable strategic value as large technology companies expand infrastructure in India.
Lightstorm Group CEO Amajit Gupta said the cable is expected to enter service in the fourth quarter of 2029. He said the company's fiber network currently connects 19 AI and cloud zones in India, with the new system expected to expand that reach to 29 zones.
For investors, the project highlights Microsoft's continued spending on global AI infrastructure. The cable could strengthen cloud connectivity in a fast-growing region, though the benefits are long term.