Tata Communications to commit Rs 4,350 crore to AI-ready links between Indian data hubs
Tata Communications plans Rs 4,350 crore for data-centre-to-data-centre connectivity across India, rolled out in phases through FY36 and funded from operating cash flow.
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what happened
According to Moody's, Tata Communications intends to put Rs 4,350 crore into building roughly 10,000 km of network designed for AI workloads across India. The company announced the plan on Monday, October 26. The work will run in three phases between FY30 and FY36, with the spending covered by the firm's own operating cash.
Cushman & Wakefield estimates that India's operating data centre capacity had reached close to 1.8 GW by the first half of 2026, with another 3.86 GW under construction or planned through 2030. Demand for linking these facilities is rising on the back of cloud adoption, AI deployment and corporate needs for high-capacity digital infrastructure.
The first phase will cover the Mumbai, Pune, Hyderabad and Chennai corridor and is expected to become operational within three years. Later stages will reach Vizag, Bhubaneswar, Jamnagar and GIFT City, and connect major clusters to international cable landing stations.
why it matters
For markets, this signals heavy capital spending on India's digital infrastructure as AI demand accelerates. The company cites an industry benchmark of 15 to 20% return on investment, with revenue expected to follow as capacity comes online. For Tata Communications and data centre operators, this offers a clue about future revenue growth.
market impact
Tata Communications and India's data centre market: large network capex, with revenue arriving once capacity goes live
tags
instruments
sources
- Tata Communications targets 40% of India's data centre connectivity market with Rs.4,350 crore investment — Moody's, 26 October 2026 at 17:45 UTC
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