Tata Communications to Invest $450 Million in AI Connectivity Infrastructure

Tata Communications has announced a capital expenditure plan of approximately $400-450 million to construct 10,000 kilometers of AI-ready fibre infrastructure across India. Scheduled for execution between fiscal years 2030 and 2036, the project aims to increase the company's network capacity by 6 petabits per second, bringing its total capacity to 7.25 pbps.

The investment will be funded through operating cash flows and focuses on creating low-latency corridors between major data centers and AI hubs. The initial phase will target the Mumbai-Pune-Hyderabad-Chennai route before expanding to other emerging clusters. The infrastructure is designed to integrate with the company’s existing international cable landing stations.

Chief Product and Technology Officer Rupesh Chokshi stated that the network expansion is necessary to meet the requirements of hyperscalers, cloud providers, and global capability centers that require high-speed data transfer for large-scale AI workloads.

This move follows broader industry trends in India, where infrastructure providers are rapidly scaling capacity to accommodate AI training and inference requirements. E2E Networks recently disclosed plans to increase its own AI factory capacity by 59% using NVIDIA Blackwell GPU systems, signaling sustained competition in India's digital infrastructure market.