07/03/2026

India Faces Supply Disruptions Amid US-Iran Conflict

Updated 17 hours ago: The focus shifted from the US-Iran conflict's impact on India's energy and economic stability to the vulnerabilities of undersea internet cables in the Strait of Hormuz and the implications for India's internet traffic and data centre development.

The Strait of Hormuz, crucial for global shipping, is becoming a vulnerable corridor for undersea internet cables due to escalating tensions in West Asia. This passage handles about one-third of India's westward internet traffic, with limited rerouting options available. Ongoing cable repair operations have been disrupted since September 2025 due to security risks, affecting systems like Airtel’s SEA-ME-WE 4 and Flag Telecom’s FALCON cables. Last year's cuts disrupted approximately 17% of Asia-Gulf internet traffic. Industry experts warn that prolonged disruptions could impact India's goal to develop a $270 billion data centre ecosystem. New subsea cable projects, including those by Reliance Jio and Google, are underway, but the current geopolitical climate poses significant challenges to their execution.

Published 1 day ago • 06 Mar 2026, 05:58 AM IST

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