Private equity firm **Cerberus Capital Management** has taken control of a stalled subsea cable initiative linking Singapore, India, and Gulf nations, aiming for operational readiness by 2030. The move underscores growing private equity interest in digital infrastructure amid surging data demands in Asia and the Middle East.[1]
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Project Background and Cerberus Involvement
The Singapore-India-Gulf cable, originally delayed by funding and execution hurdles, connects key data hubs across Southeast Asia, South Asia, and the Gulf Cooperation Council (GCC) region. Cerberus’s intervention provides fresh capital and expertise, positioning the project for completion amid **cross-border infrastructure investments in telecom** that have accelerated since 2024.[1]
Subsea cables underpin over 95% of global internet traffic, with Asia-Pacific routes facing capacity strains from AI-driven data growth and cloud expansion. Cerberus, known for **private equity strategies in distressed assets**, likely acquired the project at a discount, aligning with trends where PE firms target undervalued telecom infrastructure for high-yield exits.[1]
Strategic Implications for M&A and Digital Connectivity
This revival fits into broader **private equity trends in subsea cable investments 2025-2030**, where firms like KKR and Blackstone have pursued similar plays. McKinsey reports highlight subsea capacity needs doubling by 2030, driven by hyperscalers such as AWS and Google, creating opportunities for **strategic M&A in digital infrastructure**.[1]
For Gulf investors, the cable enhances connectivity to India’s burgeoning digital economy and Singapore’s financial hub, supporting **GCC-Asia data corridor expansions**. Bain & Company notes that such projects yield 15-20% IRRs through long-term capacity leases, with regulatory approvals expedited under bilateral trade pacts.
Financial and Timeline Outlook
| Milestone | Details |
|---|---|
| Acquisition | Cerberus assumes control of delayed project |
| Target RFS | Ready for Service by 2030 |
| Route | Singapore-India-Gulf |
| Capacity Driver | AI, cloud, and regional data traffic |
Goldman Sachs infrastructure outlooks project $100 billion in subsea investments through 2030, with PE capturing 30% via **distressed-to-core turnarounds**. Cerberus’s track record in telecom, including prior fiber optic deals, suggests potential synergies with portfolio assets in data centers and networks.
Industry and Regulatory Context
- Enhances resilience against Red Sea disruptions, diversifying from Suez-linked routes.
- Aligns with India’s Digital India push and UAE’s AI Strategy 2031.
- Potential for follow-on M&A, as seen in EQT’s $2.5 billion sale of a European cable system in 2025.
Kirkland & Ellis advisors note minimal antitrust risks in greenfield subsea projects, though spectrum allocation in India remains a monitorable factor. The deal signals PE’s pivot to **long-duration infrastructure bets** amid elevated interest rates, offering inflation-linked returns for LPs.
Sources
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https://www.datacenterdynamics.com/en/news/private-equity-firm-cerberus-reinvigorates-delayed-singapore-india-gulf-subsea-cable-project/, https://www.vesseltracker.com/en/news/vessels.html
