Internet and telecom major Tata Communications (formerly VSNL) will invest $430 million to set up a new Internet data centre in Singapore and extend its intra-Asia submarine cable system to the Philippines and Vietnam.

The investment, which will be raised through internal accruals and various funding modes, is part of the company's $2 billion capex plans announced in 2008.

The company had intended to make investments of $2 billion over the next three-year period.

"The Asian market continues to be promising, even in the current economic environment. Businesses need to capitalise on the opportunities this region provides, and investments in Asia are critical for the growth of global business," Tata Communications President and Chief Operating Officer Vinod Kumar said over videoconferencing from Singapore.

The Tata group company is using the investments for building the data centre - Tata Communications Exchange – and for completing the main segment of its TGN-Intra Asia Cable System.