Singtel and Gulf Energy Partner on Subsea Cable to Serve Southeast Asia's AI Boom

Singapore Telecommunications (Singtel) and Thailand’s Gulf Energy Development announced on Thursday a new partnership to build and invest in submarine cable systems, targeting the rapidly growing demand for data connectivity across Southeast Asia.

The collaboration is a direct response to the expansion of cloud computing, artificial intelligence, and data center services, which require high-capacity, reliable data transit infrastructure.

First Project to Link Vietnam, Thailand, and Singapore

The partnership's inaugural project will be the Vietnam-Thailand-Singapore (VTS) Cable System. The companies stated that the new system is expected to be operational by 2030, with capital spending distributed over the coming years.

The venture leverages Gulf's extensive infrastructure portfolio and Singtel's deep expertise in subsea cable networks. According to the announcement, Singtel Singapore and Gulf’s Thai telecom associate, Advanced Info Service (AIS), will use their established connectivity capabilities and customer bases to help develop and commercialize the VTS system.

Meeting AI-Driven Infrastructure Demand

Ad

This initiative is part of Singtel's broader strategy through its Digital InfraCo business, which includes its submarine cable network, the regional data-center arm Nxera, and its GPU-as-a-service unit, RE:AI. The group has identified the growth in AI and cloud workloads as a key driver for demand in both data center capacity and high-performance connectivity.

AI applications and cloud services rely on the seamless movement of massive data volumes between data centers, corporate users, and large-scale cloud providers, known as hyperscalers. Singtel's existing network already connects Singapore to more than 100 countries, forming a backbone for global data flows.

Financial Terms Undisclosed

The companies did not disclose the size of their respective investments, the ownership structure of the partnership, or the expected financial returns, making the immediate contribution to Singtel's earnings unclear.

The agreement deepens the relationship between the two companies. In June, Singtel sold a 2.8% stake in Gulf for approximately S$1 billion as part of its ongoing asset-recycling program. Following Thursday's announcement, Singtel shares were down 0.7% at S$4.53 in late trading, a move largely in line with the broader market.