Tata Comms Eyes $1B Data Centre Network Boom

Tata Communications is strategically positioning itself to capture a substantial share of India's rapidly expanding data centre networking market. With an anticipated fivefold increase in data centre capacity across India, the company identifies a potential $1 billion opportunity in connecting these facilities.

The company's managing director and chief executive, Ganesh Lakshminarayanan, stated that their focus will be on interconnections between data centres and offering managed network services. This initiative is crucial for increasing operating margins, particularly by prioritizing revenue from digital-first clients engaged in data centres and cloud migration.

Tata Communications has refined its core infrastructure offerings to encompass network, cloud, and security solutions, moving beyond traditional connectivity and voice services. This pivot is supported by favorable brokerage reports, with projections suggesting substantial growth in digital services revenue by 2027-28.

Despite recent reports of undersea cable damage in September 2025, the company asserts that its diversified connectivity routes—including subsea, terrestrial, and satellite—have mitigated significant operational disruptions. The company, formerly Videsh Sanchar Nigam Ltd (VSNL), has seen its shares gain 41% since late 2022.