Southeast Asia's Digital Transformation: New Undersea Cable Talks

Keppel and Sovico Group are in discussions to build undersea fiber-optic cables to enhance Southeast Asia's data center capacity. This effort aims at meeting the region's growing demand for AI services. The plan may involve a direct link between Vietnam and Singapore, amid geopolitical tensions.

Singaporean asset manager Keppel and Vietnamese conglomerate Sovico Group are considering ambitious plans to lay undersea fiber-optic cables aimed at bolstering the region's data center capabilities, according to insiders.

Southeast Asia is at the heart of global connectivity, with countries working to boost their infrastructure due to increasing internet usage, driven largely by AI services. Vietnam, for example, aims to establish 10 new undersea cables by 2030.

The discussions reflect broader geopolitical tensions, notably the Sino-American tech war, which is influencing decisions on strategic infrastructure projects like these cables.

(With inputs from agencies.)