Tata Communications targets $1bn India data-centre connectivity opportunity

Tata Communications is positioning for India’s expected fivefold data-centre capacity expansion, using cloud migration, managed networks and AI-linked enterprise infrastructure to grow digital-services margins through 2027-28.

— Source publishedWed, 29 Jul, 2026, 05:41 IST·First seen Wed, 29 Jul, 2026, 05:45 IST·Source Mint · Companies

What happened

Tata Communications is targeting a larger share of India’s estimated $1 billion data-centre connectivity market, banking on fivefold capacity growth. New CEO

Key facts

  • $1 billion estimated India intra-data-centre connectivity opportunity
  • 5x expected increase in India data-centre capacity
  • ₹129.72 crore March-quarter net profit
  • ₹28,000 crore projected digital services revenue by 2027-28
  • 74% data-centre operations sold to ST Telemedia Global Data Centres
  • 26% stake retained in STT's India entity
  • ₹24,803 crore revenue in 2025-26
  • 41% share-price gain since late 2022
  • ₹1,752 current share price

Why this matters

Corporate-development teams should assess Tata Communications as a potential infrastructure partner or acquisition-adjacent ecosystem player in cloud migration, managed networks and AI-enabled enterprise connectivity.

What to watch

  • Announced and commissioned Indian data-centre capacity versus the projected fivefold expansion.
  • Hyperscaler cloud-region launches, AI infrastructure investments and colocation leasing absorption in India.
  • Growth in Tata Communications digital-services revenue, managed-network bookings, EBITDA margin and large-deal wins.
  • Pricing trends for metro, inter-city and intra-data-centre connectivity.
  • Government data-localisation, cybersecurity and digital-infrastructure policy changes.
  • Competitive moves by Bharti Airtel, Jio, Sify, Nxtra, STT GDC, Equinix and global cloud-networking providers.
  • Package data-centre interconnect, cloud migration, SD-WAN/SASE, cybersecurity and observability into vertical-specific managed-service offers.
  • Secure anchor partnerships with hyperscalers, colocation operators and sovereign/cloud providers to embed Tata Communications connectivity in new capacity builds.
  • Prioritise Mumbai, Chennai, Hyderabad, Bengaluru, Pune and NCR routes where cable landing stations, cloud regions and data-centre clusters create network-density advantages.
  • Invest selectively in automation and AI operations to protect margins as managed-network volumes scale.
  • Use long-term enterprise contracts and SLA-led pricing to reduce exposure to commoditised bandwidth competition.