SINGAPORE — Singtel and Thailand’s Gulf Development are joining forces to build new submarine cable connectivity between Thailand and Singapore, stepping up investment in the digital infrastructure needed to support Southeast Asia’s rapidly growing demand for artificial intelligence, cloud computing and data centre services.
The strategic partnership will see the two companies develop and invest in subsea cable assets, with their first major initiative focused on the Vietnam-Thailand-Singapore, or VTS, Cable System.
The new system is expected to enter service by 2030, creating another major digital link between Thailand and Singapore as the region races to expand its capacity for AI and data-intensive services. Capital spending for the project will be spread over several years.
A New Digital Highway Under the Sea
The partnership comes as Southeast Asia faces a surge in demand for faster and more resilient connectivity.
Cloud platforms, AI systems and data centres require enormous volumes of data to move rapidly between countries and digital hubs. Submarine cables form the backbone of that international traffic, carrying the vast majority of global internet and data communications.
The VTS Cable System will strengthen Thailand’s connection to Singapore while also adding another important route through Vietnam, creating greater network capacity and diversity across the region.
Singtel said the partnership would combine its experience in digital infrastructure and submarine cable systems with Gulf’s infrastructure expertise and expanding digital business portfolio.
AIS and Singtel Singapore to Support the Project
Singtel Singapore and AIS, Singtel’s Thai associate, will support the development and commercialisation of the cable system.
The companies will bring their connectivity capabilities, local market knowledge and customer reach to the project, which is expected to serve growing demand from enterprises and digital service providers across Southeast Asia.
The agreement also builds on an already deep relationship between Singtel and Gulf in Thailand, where the companies have existing interests across telecommunications and data centres.
Thailand remains a key market for Singtel through its partnership with Gulf and its investment in AIS, even after Singtel sold a 2.8% stake in Gulf Development for about S$1 billion in June as part of its capital recycling programme.
AI and Data Centres Are Driving the Race
The timing of the deal reflects a major shift in Southeast Asia’s technology landscape.
AI applications, cloud services and hyperscale data centres are creating unprecedented demand for high-capacity international networks.
Singtel has increasingly positioned digital infrastructure as a major growth engine, expanding its data centre and connectivity businesses while pursuing opportunities across the AI ecosystem. The company said its broader strategy includes building infrastructure to support sovereign and regional AI demand.
For Gulf, the partnership supports Thailand’s ambitions to become a major digital and AI hub in Southeast Asia.
Gulf chief executive Sarath Ratanavadi said the collaboration represents an important milestone in the company’s digital infrastructure strategy and would help create critical infrastructure for long-term digital growth.
More Cable Projects Could Follow
The Thailand-Singapore cable partnership may only be the beginning.
Singtel and Gulf said they could consider future investments in terrestrial cable networks and other submarine cable systems.
That opens the door to a broader regional digital infrastructure platform connecting data centres, cloud providers and major population centres across Southeast Asia.
As AI adoption accelerates, companies are increasingly looking beyond data centres alone. The ability to move massive amounts of data quickly and reliably between countries is becoming just as important.
Why Singapore and Thailand Matter
Singapore is already one of Asia’s most important digital and data centre hubs, while Thailand is rapidly expanding its technology infrastructure and attracting new investment.
Connecting the two countries with additional high-capacity subsea infrastructure could strengthen Southeast Asia’s wider digital ecosystem and provide businesses with more network capacity and route diversity.
For Singtel, the project also reinforces its position as a major regional connectivity and digital infrastructure player. The company already operates an extensive subsea cable network connecting Singapore with international markets.
The Bottom Line
Singtel and Gulf are building a new digital bridge beneath the sea.
Their partnership will begin with investment in the Vietnam-Thailand-Singapore Cable System, which is expected to be operational by 2030 and strengthen connectivity between two of Southeast Asia’s biggest digital hubs.
With AI, cloud computing and data centres driving explosive demand for data, the race is no longer just about building bigger data centres.
It is also about building the digital highways that connect them — and Singtel and Gulf are betting that Southeast Asia’s next big growth story will travel through cables deep beneath the sea.
WWC ONE MEDIA J.M.D
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