Keppel and Sovico Discuss Undersea Cables

Singapore's Keppel and Vietnam's Sovico Group are in negotiations to develop new undersea fibre-optic cables to enhance Southeast Asia's data centre capabilities, amid rising demand for AI services. The proposed $150 million project includes a direct cable linking Vietnam to Singapore, but discussions are ongoing, with Keppel favoring a more extensive consortium plan that would connect Singapore to Japan. This initiative is part of Vietnam's goal to establish ten new submarine cables by 2030 and is influenced by the US-China tech rivalry, where the US is wary of Chinese involvement in critical infrastructure. Both companies see the potential for significant investment in the region’s digital future, particularly as Singapore's data capacity nears saturation. The outcome of these discussions remains uncertain as no formal agreements have yet been reached.