Subsea Cable Vulnerabilities and the Strategic Imperative for Resilient Cloud Infrastructure Investment

The global digital economy hinges on a fragile yet indispensable lifeline: subsea communication cables. These undersea arteries carry over 99% of intercontinental data traffic, yet their vulnerabilities—ranging from geopolitical sabotage to accidental damage—pose existential risks to global connectivity. Southeast Asia, a critical node in this network, hosts over 40 subsea cables by 2028, with Singapore alone serving as a hub for 26 landings in 2023 [1]. However, the region’s strategic location also exposes it to seismic risks, shipping lane disruptions, and deliberate attacks, as seen in the 2024 Red Sea cable cuts that disrupted 70% of Europe-Asia data traffic [2]. For investors, this crisis of resilience presents an opportunity to identify undervalued tech and infrastructure firms pioneering solutions to secure the backbone of the digital age.

The Growing Imperative for Resilience

The demand for subsea infrastructure is surging, driven by artificial intelligence, 5G, and the Internet of Everything. By 2025, Southeast Asia’s AI market is projected to reach $10.88 billion, with Indonesia and Malaysia leading investments in AI-ready data centers [3]. Yet, this growth is shadowed by escalating threats. Geopolitical tensions, such as China’s alleged anchor-dragging incidents in the South China Sea, and cyberattacks like ransomware surges in Thailand (141,258 financial phishing cases in H1 2024) [4], underscore the fragility of existing systems.

The U.S. Federal Communications Commission (FCC) has responded by tightening subsea cable security rules, banning foreign adversaries from projects and mandating robust cybersecurity protocols [5]. Meanwhile, NATO’s “Baltic Sentry” operation and EU-Southeast Asia collaborations highlight the global stakes of protecting these cables [6]. For investors, the convergence of geopolitical urgency and technological innovation points to a sector ripe for disruption.

Innovations in Resilience: AI, Cybersecurity, and Redundancy

Undervalued firms are emerging as critical players in addressing subsea vulnerabilities. In Singapore, watchTowr leverages Continuous Automated Red Teaming (CART) to simulate cyberattacks and preemptively identify infrastructure weaknesses [7]. Similarly, Malaysia’s Securemetric specializes in AI-enhanced threat detection, offering real-time monitoring for subsea cable networks [8]. These startups are part of a broader shift toward AI-driven infrastructure, with the global AI cybersecurity market projected to grow from $22.4 billion in 2023 to $60.6 billion by 2028 [9].

Physical resilience is equally vital. MaiStorage Technology in Malaysia, backed by Phison Electronics, is developing AI-optimized storage solutions to safeguard data integrity during cable outages [10]. Meanwhile, Indonesia’s eFishery integrates AI for aquaculture, demonstrating the scalability of AI-driven monitoring systems to subsea infrastructure [11]. Academic-industry partnerships, as highlighted in the SubTel Forum, are also advancing redundancy strategies, such as distributed fiber optic sensing (Raman-DTS) to detect cable damage [12].

Strategic Investment Opportunities

The key to unlocking value lies in firms addressing both technical and geopolitical risks. Vietnam is expanding its subsea cable network, aiming to add three new cables by 2025 to reduce dependency on single points of failure [13]. Cisco and AWS are deepening their Southeast Asia presence, but smaller players like KT-Viettel and LG CNS-VNPT collaborations on AI-powered deepfake detection offer niche yet critical solutions [14].

For infrastructure investors, the focus should be on firms enhancing repair capabilities and redundancy. Tusass in Greenland, though Arctic-focused, exemplifies the need for robust, redundant systems in high-risk environments—a model applicable to Southeast Asia’s maritime corridors [15]. Additionally, public-private partnerships, such as Singapore’s Counter Ransomware Initiative (CRI), highlight the importance of policy alignment in scaling resilient infrastructure [16].

Conclusion

The subsea cable crisis is not merely a technical challenge but a geopolitical and economic imperative. As Southeast Asia’s digital economy accelerates, undervalued firms addressing AI-driven monitoring, cybersecurity, and redundancy will play a pivotal role in securing global connectivity. For investors, the time to act is now—before the next Red Sea incident or geopolitical disruption reshapes the landscape.

Source:
[1] Subsea Communication Cables in Southeast Asia [https://carnegieendowment.org/research/2024/12/southeast-asia-undersea-subsea-cables?lang=en]
[2] Red Sea cable cuts' impact was 'severely underestimated' [https://www.telecoms.com/telecoms-infrastructure/red-sea-cable-cuts-impact-was-severely-underestimated-]
[3] Indonesia AI Revolution: $10.88B Market Attracts Global Tech [https://introl.com/blog/indonesia-ai-revolution-infrastructure-investment-2025]
[4] Cybersecurity threatscape in Southeast Asia [https://global.ptsecurity.com/en/research/analytics/cybersecurity-threatscape-in-southeast-asia/]
[5] FCC aims to boost subsea cable development [https://www.rcrwireless.com/20250807/ai-infrastructure/subsea-cable-development]
[6] NATO and the Protection of Undersea Cables: US Interests and Flow Security Interdependence [https://kkrva.se/nato-and-the-protection-of-undersea-cables-us-interests-and-flow-security-interdependence/]
[7] Top 5 cybersecurity startups in SEA protecting businesses [https://techcollectivesea.com/2025/04/10/cybersecurity-startups-southeast-asia-digital-threats/]
[8] Top 10 AI Companies & Startups in Malaysia [2025] [https://www.secondtalent.com/resources/ai-companies-startups-in-malaysia/]
[9] Artificial Intelligence in Cybersecurity Market Share, Forecast [https://www.marketsandmarkets.com/Market-Reports/artificial-intelligence-ai-cyber-security-market-220634996.html]
[10] Top 10 AI Companies & Startups in Malaysia [2025] [https://www.secondtalent.com/resources/ai-companies-startups-in-malaysia/]
[11] Indonesia AI Revolution: $10.88B Market Attracts Global Tech [https://introl.com/blog/indonesia-ai-revolution-infrastructure-investment-2025]
[12] SubTel Forum Issue #142 - Global Capacity [https://issuu.com/subtelforum/docs/subtel_forum_issue_142_-_global_capacity]
[13] State of Internet Access in Vietnam: From Fiber to Satellite Skies [https://ts2.tech/en/state-of-internet-access-in-vietnam-from-fiber-to-satellite-skies/]
[14] AI as a Growth Engine in Southeast Asia's Digital Economy [https://quantilus.com/article/the-future-of-cybersecurity-ai-as-a-growth-engine-in-southeast-asias-digital-economy/]
[15] "Greenland: Navigating Security and Critical Infrastructure in the Arctic – A Technology Introduction" [https://techneconomyblog.com/]
[16] Phishing, ransomware and infected hardware major cyber threats for Singapore [https://govinsider.asia/intl-en/article/phishing-ransomware-and-infected-hardware-major-cyber-threats-for-singapore]