It will span 100 km and is expected to be operational in Q4 2026.

 

SINGTEL : Z74 0% has signed a memorandum of understanding (MOU) with Indonesian carrier services provider Telekomunikasi Indonesia International (Telin) to develop a submarine cable system connecting Singapore and Batam.

 

The project, carried out under a consortium called Indonesia Singapore Cable System (Insica), will develop the 100-km-long cable system, expected to be operational in Q4 2026.

 

It will feature a 24-fibre-pair subsea cable, along with two diverse terrestrial cable paths. Each fibre pair will have a maximum capacity of up to 20 terabits per second.

 

On Friday (May 31), Singtel and Telin said this is expected to deliver &ldquo exceptional bandwidth, seamless connectivity and robust network security&rdquo , while enabling efficient resource-sharing and scalability.

 

Both parties added that Insica&rsquo s diverse link will enhance network protection and reliability, which will ensure 24/7 operations for data centres.

 

Direct connectivity between data centres is further expected to support the deployment of emerging technologies that require high bandwidth and low latency for commercial-scale and real-time applications.

 

Examples of such emerging technologies include the Internet of Things, robotics, artificial intelligence (AI) and data analytics.

 

Ooi Seng Keat, vice-president of digital infrastructure and services at Singtel, said: &ldquo With this cable system, we&rsquo ll enhance the connectivity between the countries to support the intensive, higher-power-density AI workloads of enterprises and cloud companies.&rdquo

 

While Telin chief Budi Satria Dharma Purba said both Batam and Singapore are &ldquo prime locations&rdquo for data centre investments, Ooi noted that Batam was &ldquo emerging as a prime location&rdquo for data centres because of its closeness to Singapore.

 

Ooi said: &ldquo The development of the Insica cable system is yet another step that we&rsquo re taking in architecting a hyper-connected, digital ecosystem to serve the long-term demands of the region&rsquo s digital future and boost the regional economy.&rdquo

The KKR-Singtel consortium is tipped to be splashing US$1 billion for a 20 per cent stake in one of Asia&rsquo s biggest data centre providers

 

SHARES of Singtel : Z74 +0.41% held steady on Wednesday (May 29) after the telco resumed trading, as investors digest its potential deal with partner KKR to buy a US$1 billion stake in data centre provider ST Telemedia Global Data Centres (STT GDC).

 

The KKR-Singtel consortium is competing with alternative investment firm Stonepeak for a stake of up to 20 per cent, sources told Reuters. STT GDC is one of Asia&rsquo s biggest data centre providers.

 

The telco called for a trading halt right when the market opened, and lifted the halt 45 minutes later after releasing its statement confirming there is no definitive or binding deal at this time.

 

&ldquo Singtel regularly explores and reviews business opportunities, projects and proposals relating to its business and enters into discussions with various parties from time to time,&rdquo the telco said in a bourse filing.

 

It added that when such discussions occur, there is no certainty that any transaction or definitive or binding agreement will materialise from them.

SINGAPORE - A consortium of US firm KKR and Singtel has emerged as the frontrunner to buy a minority stake worth US$1 billion (S$1.35 billion) in one of Asia&rsquo s biggest data centre providers, two sources with knowledge of the matter said.

 

The potential investment in STT Telemedia Global Data Centres (STT GDC) reflects growing interest and demand for data centres across Asia Pacific as nations and companies respond to the boom in artificial intelligence.

 

The KKR-Singtel consortium is competing with New York-headquartered alternative investment firm Stonepeak for the stake of up to 20 per cent, one of the sources said.

 

A deal could be sealed or announced in early June, the first source added.

 

The sources declined to be identified as the information is not yet public.

 

KKR declined to comment. Singtel, STT and Stonepeak did not immediately respond to requests for comment.

 

New York-based global investment firm KKR bought a 20 per cent stake in Singtel&rsquo s regional data centre business in 2023 for S$1.1 billion.

 

In February KKR announced it had raised US$6.4 billion for a fund focused on Asia-Pacific infrastructure and energy-related assets.

 

Founded in 2014, STT GDC is one of the fastest growing data centre providers with operations in Singapore, the UK, Germany, India, Thailand, South Korea, Indonesia, Japan, the Philippines, Malaysia and Vietnam, according to its website.

 

ST Telemedia, parent of STT GDC, is a Singapore-headquartered strategic investor specialising in assets including communications and data centres, according to its website.

 

ST Telemedia is wholly owned by Singapore state investment firm Temasek Holdings. REUTERS