NT Proposes THB16.1 Billion Submarine Cable Project to Boost Digital Infrastructure

Key summary

National Telecom Public Company Limited (NT), a state enterprise under the Ministry of Digital Economy and Society, has submitted a proposal to utilize THB16.1 billion from government borrowing to construct an international submarine cable network. A source within the Ministry of Finance confirmed the request falls under the 2026 emergency decree, which authorizes borrowing to address energy crisis effects and support the country's energy transition. The one-year project is planned for the 2027 fiscal year and aims to replace existing infrastructure nearing the end of its service life.

The proposal allocates the budget into three parts: THB6.6 billion for the Thailand–Singapore systems in June 2027, THB4 billion for the Thailand–Europe system, and THB5.5 billion for the Thailand–Japan system, with a total of THB9.5 billion scheduled for September 2027. No disbursements are planned between October 2026 and May 2027. Payments will be structured as 10% upon signing, 80% during installation, and 10% upon acceptance.

NT cited that over 95% of global internet data traffic relies on submarine cables. The company stated that Thailand's current cable systems are deteriorating due to age and lack sufficient bandwidth for rising data demands from artificial intelligence (AI), cloud computing, and hyperscale data centres. NT described this shortfall as a bottleneck weakening the country's competitiveness.

The project links to skills and innovation goals, aiming to provide access to high-performance computing systems for Thai start-ups, researchers, and businesses to develop technologies like self-driving vehicles, fintech, and telemedicine. It is expected to create demand for highly skilled workers, including data engineers, data scientists, and AI engineers.

The project is currently in preparation and cannot begin immediately as NT needs to secure new space for the work. While existing premises could be used for cable landing station infrastructure, power systems and facilities would require upgrading. There are no design drawings or specifications yet. Each cable-laying operation requires permission from the National Broadcasting and Telecommunications Commission (NBTC), the Department of National Parks, Wildlife and Plant Conservation, the Marine Department, the Department of Fisheries, and the Thai Maritime Enforcement Command Center. An Initial Environmental Examination (IEE) report is required for routes passing through national parks.

NT noted there is no feasibility study yet, though the proposal outlines technical, market, economic, and social rationale. The timetable includes searching for partners and forming a consortium from October to December 2026, selecting a contractor via international tender in early 2027, followed by contract signing, installation, and network activation in September 2027. A committee with representation from the Ministry of Digital Economy and Society will be appointed to ensure transparency, track progress towards consortium signing, and assess investment value flowing into Thailand's data centre sector three to five years after the network goes live.