Asia Bets Big On A Deeper Digital Backbone

Singtel and NEC sign contract to build the AUG East cable and expand Asia’s data capacity

25 Nov 2025

A new contract for the AUG East subsea cable is set to increase bandwidth across Asia at a time when the region’s digital networks are struggling to keep up with rapid growth. The agreement, signed by the AUG East consortium and Japan's NEC, comes as cloud services, artificial intelligence tools and everyday online activity continue to push existing routes close to their limits.

The project centres on an 8,900km system running between Singapore and Japan, with planned landing points across Southeast and Northeast Asia. Although still at an early stage, the cable is expected to expand overall capacity and add alternative paths that could reduce congestion and strengthen network resilience.

Asia's data traffic is rising at nearly 20 per cent a year, placing pressure on older systems that were not designed for such volumes. A Singtel spokesperson described the contract as a practical step to meet "the next wave of demand". NEC executives offered a similar view, arguing that new infrastructure is essential to keep performance steady as data flows continue to rise.

The initiative also reflects a wider shift towards consortium-led development. Subsea cables require large capital commitments, specialised vessels and careful engineering, prompting operators to share costs and risks. Joint investment can also help navigate supply chain delays and complex regulatory reviews, though competition for landing sites and lengthy approval processes may influence the project's timetable.

Even so, expectations remain positive. Supporters say AUG East shows how collaboration can reinforce Asia's digital backbone. Additional routes are intended to reduce pressure on established corridors, offering faster and more reliable connectivity for businesses and more stable online services for consumers.

Set against the region's rapid digital expansion, the contract marks more than a construction step. It signals growing ambition among operators to prepare for the heavier data demands expected through the next decade.