Pranav Hotkar
Singapore - July 2, 2026 - Microsoft has joined a consortium led by digital network provider Lightstorm to build a new submarine cable system connecting India with Malaysia and Singapore, strengthening the digital backbone supporting AI data centers, hyperscale cloud infrastructure, and cross-border enterprise connectivity across one of Asia's fastest-growing computing corridors.
Known as I-2SEA (India–Southeast Asia Express), the approximately 3,600-kilometer subsea cable will link India's eastern coast with Southeast Asia through landing stations in Machilipatnam and South Chennai before continuing to Malaysia and Singapore. The consortium also includes Singtel, Tata Communications, ASEAN Cableship, and NEC Corporation, with the system expected to enter service in the fourth quarter of 2029.
The new cable is being designed to address the sharp rise in bandwidth demand generated by AI training, inference, cloud services, and hyperscale data center deployments. Unlike legacy submarine systems built primarily for conventional internet traffic, I-2SEA will provide high-capacity, low-latency connectivity optimized for moving massive AI datasets between regional clouds and compute hubs.
For Microsoft's expanding AI infrastructure in Asia, the project will improve network resilience and diversify international connectivity between India and Southeast Asia. India has become a strategic market for hyperscale investment, with technology companies rapidly expanding AI-ready data center capacity to support enterprise cloud adoption and generative AI workloads. The new cable will complement terrestrial fiber networks, creating additional routing diversity for mission-critical digital infrastructure.
Lightstorm said the system will significantly expand its regional connectivity platform. The company currently interconnects 19 AI and cloud availability zones across India through its terrestrial fiber network and expects that number to increase to 29 once I-2SEA becomes operational. The additional connectivity is intended to support growing demand from hyperscale operators, cloud providers, and enterprises deploying latency-sensitive AI applications.
The landing point at Machilipatnam, in the Indian state of Andhra Pradesh, is particularly notable as the region is emerging as a new destination for large-scale data center investment. Several global technology companies have announced digital infrastructure projects there, reflecting a broader shift toward developing new AI infrastructure hubs beyond traditional metropolitan markets.
Industry analysts increasingly view submarine cable systems as foundational infrastructure for the AI economy. While data centers provide computing power, international fiber networks transport the enormous volumes of information required to train models, synchronize cloud regions, and support real-time AI services. More than 95% of global internet traffic is carried over subsea cables, making continued investment essential as AI workloads continue to expand.
The I-2SEA project also reflects the growing convergence of cloud providers, telecom operators, and infrastructure companies in building integrated AI ecosystems. Rather than investing solely in data centers, hyperscalers are increasingly backing long-haul terrestrial and submarine connectivity to ensure sufficient network capacity accompanies new computing infrastructure. As AI deployments accelerate across Asia, the new cable is expected to become a critical digital artery linking India's rapidly expanding data center market with major cloud and interconnection hubs in Southeast Asia.
