An update on the MViSTA project, a transnational submarine fiber optic cable project in Southeast Asia supported by the United States, reveals plans for the project to commence operations by the end of 2028. The developers of the project have disclosed that a cable supplier will soon be selected from either Japan’s NEC or France’s Alcatel Submarine Networks (ASN).
This new submarine fiber optic cable, spanning approximately 2,500 kilometers and equipped with 16 pairs of fibers, will connect Malaysia, Vietnam, Singapore, and Thailand, with an estimated cost of around $400 million.
According to reports from Reuters, Mark Procter, Deputy Director of Stavian High Tech Infrastructure, one of the project developers, disclosed that Chinese suppliers have been excluded from bidding for the project, avoiding contested maritime areas in the South China Sea claimed by Beijing.
Procter mentioned that U.S. submarine cable manufacturer SubCom was also invited to participate in the bidding process but had to withdraw due to prior business commitments.
The Stavian Group is planning to construct a data center park in southern Vietnam connected to the submarine cable, where “any key technologies deployed will exclude participation from Chinese enterprises,” as stated by Procter.
Named Stavian Digital Park, the park aims to attract major cloud and artificial intelligence (AI) infrastructure operators. The United States Trade and Development Agency (USTDA) has agreed to fund a feasibility study, projected to be completed by March 2027. This study will evaluate the deployment of reliable technology and assess whether U.S. export restrictions on advanced semiconductors could impact this planned 1-gigawatt (GW) capacity infrastructure.
MViSTA has received support from the United States. APTelecom, a U.S. consulting firm cooperating with the U.S. government on submarine cable infrastructure, participated in the feasibility study of the project and is currently assisting in securing clients for the new submarine cable and data center park.
For Vietnam, which frequently experiences submarine cable failures, MViSTA holds significant importance. The country currently has 6 submarine cables connecting it globally, with plans to increase this to at least 15 by 2030. Procter mentioned that the Vietnamese government has expedited the approval process for the MViSTA project.
Amid the backdrop of U.S.-China tech competition, Vietnam, governed by the Communist Party, has been seeking a balance between major powers. Washington has been pressuring Hanoi to exclude Chinese suppliers in submarine cables, telecommunications, and AI technologies to alleviate security concerns that may impact investments. However, last year, Vietnam awarded some of its 5G network construction contracts to Chinese companies Huawei and ZTE, sparking concerns among U.S. and European officials.
Procter noted that the data center park linked to the submarine cable could help alleviate long-standing restrictions on U.S. tech giants investing in data center infrastructure in Vietnam. Yet, he also highlighted that the feasibility of investments will depend on Vietnam’s regulatory framework, particularly on cross-border data flow restrictions, which have been viewed as a significant obstacle to investment in the industry.