Singapore and Vietnam Firms in Talks for New Undersea Cables

Reuters | 13 December 2024

HANOI, Dec 13 (Reuters) - Singaporean asset manager Keppel (KPLM.SI), opens new tab and Vietnamese conglomerate Sovico Group are discussing plans for new undersea fiber-optic cables that would boost the region's data centre industry, people familiar with the discussions said.

Southeast Asian countries, a major junction for cables connecting Asia to Europe, are seeking to expand their networks to meet booming demand for AI services and data centres. Vietnam alone plans to have 10 new submarine cables by 2030.

Undersea cables are at the centre of the Sino-American tech war, with the two powers vying to win contracts, especially in Asia, to build and maintain the strategic infrastructure that carries most internet data, including sensitive information.

Under one plan under discussion, a cable would be laid to link Vietnam directly with Singapore, five people directly involved or briefed on the matter said.