Datagrid signs Tasman Ring cable deal for South Island

Datagrid New Zealand has signed a supply and installation contract with Alcatel Submarine Networks and OMS Group for the Tasman Ring Network subsea cable between Invercargill and Melbourne. The project will create the first international submarine cable landing in New Zealand's South Island.

The cable system will span about 2,300km across the Tasman Sea. Under the agreement, Alcatel Submarine Networks will supply the submarine cable system, while OMS Group will conduct the marine survey and installation work.

The network will include at least eight fibre pairs with a minimum design capacity of 160Tbps. The route will open a second international gateway for New Zealand, separate from existing links that land in the North Island.

The South Island landing marks a notable shift in the country's international connectivity footprint. New Zealand's offshore internet links have historically been concentrated in the north, leaving the country more exposed to disruption affecting a limited number of routes and landing points.

By adding a southern landing point in Invercargill, the project is intended to improve route diversity and network resilience. It is also expected to reduce latency for some South Island users by avoiding the need to send traffic through North Island infrastructure before crossing to Australia.

Datagrid Chief Executive Officer Remi Galasso said the project would have implications beyond telecoms infrastructure.

"We are delighted to sign this commercial agreement with ASN, the global leader in submarine cables, and with OMS, which operates the largest fleet of cable ships in the region," Galasso said.

He said the project would also benefit regional users and institutions.

"The Tasman Ring Network will be a game changer for Southland and for the South Island as a whole. It will unlock the potential of the region and allow South Island IT companies, universities and research centres to benefit from better internet, with latency improved by up to 45 percent compared with existing routes via the North Island. An entire digital ecosystem will be able to benefit from it and grow," Galasso said.

Alcatel Submarine Networks is one of the sector's largest suppliers, with more than 850,000km of optical systems deployed worldwide. It also operates a dedicated cable ship fleet and remains majority owned by the French state investment agency APE.

Chief Executive Officer Alain Biston said the project would establish a new route with broader economic significance.

"ASN is proud to contribute to the opening of a new digital route whose impact will undoubtedly be significant for the economic development of New Zealand," Biston said.

"We thank the Datagrid teams for their choice and assure them of our full collaboration in making this project a success," he added.

Survey plans

OMS Group will use its unmanned surface vessel, USV ELITE, for the marine survey. The vessel can collect seabed data along the route without a conventional crewed survey ship.

The approach is intended to reduce fuel use and lower emissions during the survey stage. Marine surveys are a key early step in cable projects because they determine seabed conditions, route hazards and installation requirements before laying begins.

OMS Group operates through marine services and interconnect managed services divisions. Its cable installation and maintenance business uses five active owned cable vessels, while four new vessels are under construction, according to the company.

Group Chief Executive Officer Ronnie Lim said OMS would focus on survey, installation and emissions reduction.

"We are honoured to have been selected by Datagrid, alongside ASN, to deliver the Tasman Ring Network," Lim said.

"By deploying our state-of-the-art unmanned surface vessel for the marine survey, we will drastically reduce the carbon footprint of the survey operations, demonstrating our commitment to building critical digital infrastructure in a more sustainable way. Our teams and our regional fleet look forward to carrying out the survey and installation of the cable safely and on schedule," he said.

Wider buildout

The cable project sits alongside Datagrid's broader plans in Southland, where it is developing a large data centre campus in Makarewa. Datagrid has described the site as part of an integrated digital infrastructure push centred on international connectivity, renewable energy access and local computing demand.

For New Zealand, the Tasman Ring Network would add another direct trans-Tasman path at a time when governments, network operators and data centre developers are paying closer attention to physical route diversity. The concentration of cable landings and backhaul infrastructure has become a strategic concern in many markets, especially for countries that rely heavily on a small number of international links.

If completed as planned, the Invercargill-Melbourne system would give South Island businesses, universities and research institutions a more direct route to Australia while adding a separate landing point to the national network map. The system is planned with a minimum design capacity of 160Tbps across at least eight fibre pairs.