NEC Corporation has been selected to build the Asia United Gateway East (AUG East) submarine cable system, which will connect Singapore and Japan with links to Brunei, Indonesia, Malaysia, the Philippines, South Korea and Taiwan.
Per multiple reports, the 8,900 km submarine cable system will increase capacity in the East Asia region. It is being built in anticipation of the rapid growth of network traffic from artificial intelligence (AI) and AI-enabled applications. One of the key participants in the project is Singtel (Singapore Telecommunications Limited), which is Singapore’s principal telecommunications conglomerate and the country’s largest mobile network operator. It is chairing and co-leading a consortium that includes multiple major telecom and technology companies such as Amazon Web Services (AWS), Microsoft, ARTERIA Networks, Chunghwa Telecom, DREAMLINE, Globe Telecom, Telekom Malaysia and Unified National Networks.
NEC did not issue a public statement about the project, but its importance was described by Alan Tan, chairperson of the consortium committee, and Singtel’s director of submarine cable planning. “The surge in demand for high-speed connectivity and the bandwidth needed for AI innovation in the region makes developing resilient, high-capacity digital infrastructure more important than ever.”
Citing figures from Omdia, Singtel stated that, by 2031, global network traffic from AI and AI-enhanced applications is expected to exceed that from conventional applications. By 2033, it is projected that approximately 62% of global monthly network traffic will come from AI and AI-enabled applications. “This investment will play a critical role in advancing digital inclusion and catalyzing economic growth across the region,” Tan said.
The AUG East submarine cable system is expected to be completed by the third quarter of 2029. Per Singtel, the project will deploy a “high-count fiber pair system” capable of supporting millions of simultaneous ultra-high-definition video streams.