Tata Communications to put $400-450 mn into 10,000-km data centre fibre network in India
Over the next three to five years Tata Communications will invest $400-450 million in a 10,000-km network linking India's data centre hubs, according to Moody's.
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what happened
Tata Communications plans to spend $400-450 million, or about Rs 4,350 crore, on a high-speed fibre network of 10,000 km connecting major data centre hubs across India. The company disclosed the plan in a Monday exchange filing and said the spending will be paid for from its operating cash flow.
The push comes as India's data centre sector expands quickly. Cushman & Wakefield puts operational capacity at close to 1.8 GW in the first half of 2026, with a further 3.86 GW under construction or planned through 2030. Tata Communications sees connectivity between data centres as a market worth more than $1 billion over the medium term. The first phase will link Mumbai, Pune, Hyderabad and Chennai, and later stages will extend to hubs on the eastern and western coasts.
The company's current network capacity is 1.25 petabits per second, which it expects to rise to 6 Pbps over FY30-FY36. The stock ended Monday's session 1.6% higher at Rs 1,680 on the BSE. In the September quarter, revenue grew 9.6% year on year to Rs 6,688 crore, while net profit jumped 86.3% to Rs 341 crore.
why it matters
Demand for connectivity between data centres is tied to cloud services, AI and data localisation rules, so the project is a bet on growth in that segment. The company cited an industry benchmark return on investment of 15-20% and expects revenue to follow as capacity comes online. Rivals including Airtel's Nxtra, Google, Adani and Reliance Industries are also investing heavily, so competition for customers is likely to intensify.
market impact
Indian telecom and IT infrastructure: AI-driven fibre demand supports the growth outlook for Tata Communications.
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- Tata Communications bets $400-450 mn on India's data centre connectivity boom — Moody's, 26 October 2026 at 17:45 UTC
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