Singapore, Vietnam firms in talks for new undersea cables, sources say

By Reuters December 15, 2024 | 10:47 pm PT

A Keppel signage is pictured in their office in Singapore July 6, 2023. Photo by Reuters

Singaporean asset manager Keppel and a Vietnamese conglomerate 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.

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.

It would cost $150 million, according to one source with direct knowledge of the talks.

Vietnam, with a population of nearly 100 million, is a large market for online platforms, but is currently connected to the global internet infrastructure through only five undersea branches to international cables.

Its plans to triple the number of its cables are seen by industry experts as a possible boost to its chances of becoming an alternative regional data centre hub, despite power supply issues and strict data regulations.