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New subsea cable highlights India's digital infrastructure challenges

A major new submarine cable project backed by Microsoft, Singtel, Tata Communications and NEC underscores India's urgent need to upgrade its data connectivity infrastructure as artificial intelligence demands surge.

LSN India · 9 September 2026

A consortium of leading technology companies has announced plans to deploy the I-2SEA subsea cable, a high-capacity infrastructure project designed to handle the massive data traffic required by artificial intelligence applications across the region. The venture brings together Microsoft, Singapore Telecommunications Limited (Singtel), Tata Communications, and Japan's NEC Corporation—reflecting the scale of investment now flowing into regional digital connectivity.

The initiative comes as demand for ultra-high-speed data transmission accelerates globally, driven by the computational requirements of AI systems and cloud services. Industry observers note that such projects have become essential infrastructure in the digital economy, comparable to shipping lanes and rail networks in earlier eras.

However, the emergence of yet another major subsea cable initiative also highlights persistent gaps in India's digital infrastructure ecosystem. Despite being home to significant technology talent and a massive digital services industry, India remains heavily dependent on international operators for critical data connectivity. The country's own domestic fiber-optic networks and data center capacity have not always kept pace with growing demand from multinational firms and local enterprises alike.

Experts contend that while private sector investments like the I-2SEA cable are welcome, India must simultaneously strengthen its regulatory framework, expand indigenous technical capacity, and ensure equitable access to such infrastructure across regions. The broader challenge extends beyond cables themselves to include last-mile connectivity, data governance, and cybersecurity standards. Industry stakeholders stress that sustaining India's competitive advantage in the AI-driven economy will require coordinated effort between government bodies and private sector players to modernize the nation's digital backbone.