Preparing India’s communications networks to support AI

India is witnessing a significant shift in how networks are built, scaled and operated. For years, the telecom conversation has been centered on wireless rollout milestones. According to the Department of Telecommunications, 5G is now live across 773 of India's 776 districts, with more than 250,000 sites deployed within twelve months of launch, making it one of the fastest national rollouts anywhere in the world.

Today, even as 5G network buildouts continue, the strategic focus is evolving toward a different infrastructure priority: building networks for Artificial Intelligence (AI) and cloud workloads.

AI requires different network architectures. While 5G networks are optimized for wide-area wireless connectivity to millions of endpoints, AI demands ultra-high bandwidth interconnects between data centers, low-latency pathways to edge compute nodes, and optical transport systems designed for massive data flows. These are distinct infrastructure requirements and recognizing this early opens meaningful opportunities for service providers.

AI is the new frontier for networking

India is emerging as one of the most dynamic markets for AI and cloud infrastructure globally. According to industry estimates, the country's data center capacity is projected to grow at over 50% CAGR. This growth trajectory positions India among the fastest-growing data center markets in the world.

The scale of commitment from global technology leaders underscores this momentum. Google announced a 15 billion dollar AI infrastructure hub in Visakhapatnam in partnership with Adani. Microsoft, committed 17.5 billion dollars in India, its largest investment in Asia, including a new hyperscale data center region in Hyderabad and expansion of existing facilities in Chennai and Pune. Reliance Jio is developing an integrated green AI data center in Jamnagar with Meta and Google. AWS has committed 13 billion dollars to expand India cloud capacity by 2030. Multiple clusters are taking shape across Mumbai, Chennai, Hyderabad, Bangalore, Pune and Noida, each driving demand for high-capacity interconnect.

A recent industry survey reinforces the impact of AI on network infrastructure. 77 percent of data center experts in India anticipate at least a sixfold increase in data center interconnect bandwidth over the next five years, driven by AI workloads. 52 percent say upcoming builds will be designed exclusively for AI processing.

The growth of AI positions data center interconnect and optical backbone architectures at the heart of India's digital economy, requiring operators to think beyond traditional network planning.

The emerging opportunity around neoscalers

An important trend is the rise of neoscalers: specialized AI compute providers, GPU-as-a-Service platforms and edge cloud operators positioned between hyperscalers and enterprises. Unlike hyperscalers who often build their own infrastructure, neoscalers typically rely on service providers for connectivity. This creates a significant wholesale bandwidth opportunity for service providers, including high-capacity wavelength services and dedicated optical connectivity between distributed compute locations. Service providers who can deliver these capabilities with the right service levels and operational agility are well positioned to benefit.

India's opportunity

Recognizing the need for AI-ready networks, 64 percent of Indian data center experts indicated plans to build dedicated fiber networks specifically to support AI workloads according to the same survey. Maintaining fiber rollout momentum is key, and policy frameworks under the National Telecom Policy 2025 and ongoing Right of Way streamlining efforts will enable a more conducive environment for improved connectivity.

As optical networks evolve toward higher capacities and automation, and as policy frameworks continue to mature, India is well positioned to build one of the most advanced network fabrics in the world. With a smart network foundation in place, and collaboration across the wider ecosystem, India will attain its broader digital ambitions: from digital public infrastructure to financial inclusion, from smart manufacturing to health tech, from generative AI to regional cloud ecosystems.

By: Gautam Billa, CTO, Asia Pacific, Ciena