US-Singapore Undersea Cable Project Valued at US$760 Million Receives Approval

Keppel Ltd announced that the United States has granted a landing license for the first subsea cable system directly linking Singapore to the American west coast, strengthening Singapore's position as Asia's top digital hub. The Bifrost Cable System, a collaborative initiative by Keppel, Meta Platforms Inc's subsidiary Edge Cable Holdings USA LLC, and PT Telekomunikasi Indonesia International, is projected to commence commercial operations in the latter half of 2025, according to Keppel's statement released on Friday.

According to SubmarineNetworks.com, the trans-Pacific cable system is valued at an estimated US$760 million (RM3.3 billion), with Keppel's investment share amounting to US$350 million, as stated in the release. Stretching over 20,000 kilometers (12,427 miles), the Bifrost Cable System will connect the US and Singapore via Indonesia, passing through the Java and Celebes Seas. Keppel highlighted that the project will significantly strengthen Singapore's role as Asia's premier digital hub and support the region's rapidly expanding digital economy.

Singapore aims to double its subsea cable landing capacity to reinforce its position as a critical hub for global internet connectivity. As submarine cables increasingly factor into the US-China tech rivalry, Southeast Asian nations that remain neutral are poised to benefit, with major technology firms seeking alternative routes to expand bandwidth in the region without passing through China. Minister for Digital Development and Information, Josephine Teo, noted in 2023 that investments in submarine cables and data centers are expected to generate around S$20 billion for Singapore. Additionally, the nation is exploring the development of new green data centers, with potential investments reaching up to S$12 billion. Bifrost is the first subsea cable system connecting Southeast Asia to the US to receive approval in the past eight years, according to the statement.

Initially scheduled for completion in the second quarter of last year, the project faced delays due to adverse weather conditions and challenges in securing permits for the cable's landing in Indonesia, as reported by SubmarineNetworks.