Singtel, Gulf form partnership to boost Thailand-Singapore subsea links

Singtel and Thailand's Gulf Development have announced a partnership aimed at constructing new submarine cable connectivity between Thailand and Singapore. The collaboration seeks to address the growing demand for cloud computing, AI, and data-center services in Southeast Asia. The primary initiative under this partnership is the Vietnam-Thailand-Singapore (VTS) Cable System, which is projected to become operational by 2030, with capital expenditures spread out over multiple years.

The collaboration merges Gulf's infrastructure and digital capabilities with Singtel's expertise in submarine cable technology. Both Singtel Singapore and Gulf's Thai telecom associate, Advanced Info Service (AIS), will leverage their respective connectivity capabilities and customer bases to support the development and commercialization of the VTS system.

Singtel's Digital InfraCo business encompasses its submarine cable network, regional data-center subsidiary Nxera, and RE:AI, its GPU-as-a-service platform. The company has recognized the increasing demand for high-capacity connectivity, driven by the growth of AI and cloud workloads, as well as the need for robust data-center infrastructure. Singtel's submarine network serves as a backbone for global data flows, connecting Singapore to over 100 countries.

While the financial implications of this partnership remain undisclosed by the companies, they have not specified the size of their investments, ownership structure, or anticipated returns. This agreement also expands Singtel's existing relationship with Gulf, following Singtel's sale of a 2.8% stake in Gulf for approximately S$1 billion in June as part of its asset-recycling program.