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Tata Communications plans to invest about ₹4,350 crore in a 10,000 km fibre network linking AI data centres

The phased rollout between FY30 and FY36 would add about 6 petabits a second, from operating cash flows.

By Spectate Media desk
Spectate Media graphic: Tata Communications planned fibre network capacity, existing and added, in petabits per second

Tata Communications plans to invest about ₹4,350 crore, or roughly $400 million to $450 million, in 10,000 km of AI-ready fibre connectivity across India, Inc42 reported on 26 October 2026. Spectate Media has not seen the company's announcement and relies on the Inc42 report.

What is planned

The network will link major data centres and AI hubs to meet demand from AI adoption, hyperscale data centres and cloud workloads. The first phase is the Mumbai, Pune, Hyderabad and Chennai corridor, with later phases reaching other data centre clusters. It will connect to international cable landing stations and the company's existing global network. The rollout is phased between FY30 and FY36, and the company will fund it from operating cash flows.

Capacity

The build adds about 6 petabits a second, taking total capacity to roughly 7.25 petabits a second. The report says existing utilisation is about 70% to 80%. Target customers are hyperscalers, AI platforms, cloud providers, global capability centres, enterprises and digital-native businesses. Rupesh Chokshi, the company's chief product and technology officer, said: "The AI economy needs more than compute. It needs a network built for speed, scale and resilience."

The wider context

The same Inc42 report notes E2E Networks plans to add about 5.4 MW of AI compute, a roughly 59% expansion that would take its AI factory capacity to about 14.6 MW. E2E's second-quarter operating revenue rose 411% to ₹223.8 crore, per the report.

Key numbers

  • Planned investment: About ₹4,350 crore ($400-450 million)
  • New fibre: 10,000 km (AI-ready, across India)
  • Capacity added: About 6 Pbps (Total about 7.25 Pbps)
  • Rollout: FY30 to FY36 (Operating cash flows)

What boards and CFOs should note

Three points. First, the investment is spread over roughly a decade, so annual spending is a fraction of the headline. Second, funding from operating cash flow means no new capital raise is signalled. Third, the 70% to 80% utilisation figure suggests existing capacity is already well used, which the company cites as part of the case for the build.

Source: Inc42, 26 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.

This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.

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