Herbert Smith Freehills Kramer advises Sumitomo Corporation on US$1 billion subsea cable joint venture

Leading global law firm Herbert Smith Freehills Kramer has advised Sumitomo Corporation on a new joint venture with NTT DATA Group Corporation and JA Mitsui Leasing to develop and operate the Intra-Asia Marine Cable (I-AM Cable).

This next-generation submarine communication system will connect Japan with important Southeast Asian markets.

The approximately 8,100-kilometre cable, with an initial design capacity of around 320 terabits per second, represents a total project cost of about US$1 billion and is expected to be ready for service in early 2029.

“This is a landmark intra-Asia digital infrastructure project that will deliver much-needed capacity and resilience for AI and cloud-driven data flows between Japan and Southeast Asia,” said partner Aaron White, head of technology, media, and telecommunications for Asia and Australia.

The firm advised Sumitomo on joint venture arrangements between the consortium members as well as the supply contract for the subsea cable system.

The project provides strategic exposure to critical digital infrastructure for Sumitomo and positions the company to benefit from long-term growth in data traffic driven by AI, cloud computing, and regional data center expansion.

“This project also highlights the increasing sophistication of joint venture and supply arrangements in the submarine cable sector, and how this is shaping the next generation of connectivity,” said Singapore partner Victor Chiew.

The I-AM Cable will initially link landing stations in Chiba, Mie, and Fukuoka in Japan with Malaysia and Singapore, with planned extensions to Korea, the Philippines, and Taiwan.

The cable system is intended to strengthen regional digital security and reinforce Asia’s role as a global connectivity hub, creating a new route that bypasses existing bottlenecks and enhances cable resilience.