Keppel plans new undersea cable from Singapore to Japan that could reshape connections

In Southeast Asia, Singapore's asset manager Keppel and Vietnam's Sovico Group are engaged in discussions about constructing new undersea fibre-optic cables. These cables are intended to enhance the region's data centre infrastructure, which is growing rapidly due to the increasing demand for artificial intelligence services. The planned cable connecting Vietnam directly to Singapore is estimated to cost around $150 million. However, no final agreement has been reached, and the project variables are still under negotiation between the two parties. Another option being considered is to connect Vietnam to Singapore as an offshoot of a longer cable that runs from Singapore to Japan, linking several countries along the route. This latter approach appears to be preferred by Keppel, but discussions remain ongoing, and further clarification on terms and timelines is needed before proceeding. The strategic implications of these undersea cables are significant, as they are vital for internet connectivity and data transmission. The geopolitical context adds a layer of complexity, particularly given the heightened competition between the United States and China for influence in Southeast Asia. Reports indicate that US officials are advising Vietnamese and Singaporean companies against using Chinese contractors, including HMN Technologies, due to concerns over national security and stability. As the discussions evolve, they highlight the urgent need for expanding internet capacity in an increasingly digital world, especially in a country like Vietnam, which is connected to international cables through only five undersea branches. With a population nearing 100 million, Vietnam's digital marketplace is ripe for growth, emphasizing the importance of developing robust infrastructure to support a burgeoning economy reliant on technology.