Meta plans to build a global undersea cable with a total investment of over 10 billion USD

Meta is launching an ambitious project to build a new undersea cable. This undersea cable will extend over 40,000 kilometers, with a total investment expected to exceed $10 billion, making Meta the sole owner and user of the cable.

On November 29th, Eastern Time, according to TechCrunch, the initial budget for Meta's undersea cable project was set at $2 billion, but as construction progresses, the final total investment may exceed $10 billion. This project is expected to take several years to complete, requiring sufficient time and resources for construction. Building undersea cables requires a large amount of specialized equipment, such as cable-laying ships, and the industry is currently facing resource constraints and supply-demand imbalances.

Sunil Tagare, an expert in the undersea cable industry and founder of Flag Telecom, revealed that due to the limited number of companies capable of building infrastructure, such as SubCom, which have already been booked by other large clients like Google, completing this plan is quite challenging. Analysts indicate that there is currently a tight supply of cable-laying ships and high prices, and it is expected that the project will be advanced in phases.

Meta Plans to Independently Control Global Data Transmission

Once the undersea cable project is completed, Meta will have a dedicated global data transmission pipeline. This vast network will provide Meta with a more reliable and efficient infrastructure to support its global data needs. Sources reveal that the planned route for this cable will start from the U.S. East Coast, pass through South Africa to India, and then from India through Australia to the U.S. West Coast, forming a "W"-shaped global data transmission network.

Undersea cables are a crucial component of global communication infrastructure and have been one of the backbones of internet traffic for the past 40 years. In the past, the construction of undersea cables was typically a joint investment and construction effort by telecommunications operators, but in recent years, more and more large tech companies have begun to enter this field, becoming key investors and owners. Meta's move also highlights the changes in investment and ownership structures in the undersea cable sector in recent years.

Meta is not a newcomer to the undersea cable industry. According to data from telecommunications analysis firm Telegeography, Meta is currently a partial owner of 16 undersea cable networks, including the recently invested 2Africa project, which will encircle the entire African continent. However, this new cable project will be the first undersea cable that Meta fully owns and controls.

Meta's actions place it in the same category as Google. Google is currently involved in about 33 different undersea cable routes, some of which it solely owns. Additionally, other tech companies like Amazon and Microsoft also hold partial ownership in multiple undersea cable projects or participate as capacity purchasers, but they do not fully own any routes.

Why is Meta Committed to Investing in Undersea Cables?

There are three key reasons attracting tech giants like Meta to invest in building undersea cables.

First, to ensure global communication capacity and service quality First, traditionally, communication infrastructure such as submarine cables is built and owned by telecom operators, while Meta plans to exclusively own the route and usage rights of this submarine cable, allowing it to prioritize the communication traffic on its platform.

According to Meta's financial report, it earns more money in markets outside North America than in its home market. Therefore, having priority usage rights for a dedicated submarine cable is crucial for ensuring the quality of service for this communication traffic. However, Meta still needs to negotiate with operators in various countries and handle the "last mile" delivery to user devices, which may face some challenges.

Analyst Ranulf Scarborough stated:

"Tech companies make money by showcasing their products to end users, and they will do everything possible to ensure customer experience, whether it's video or other asset transmission. Frankly, who would still rely on traditional telecom companies? Tech companies have become independent now. They realize they must build these infrastructures themselves."

Second, avoiding geopolitical risks

In recent years, submarine cables have repeatedly fallen victim to geopolitical conflicts, especially during wars or regional conflicts. For example, during the Houthi attacks, the submarine cable connecting Europe and India was cut. To avoid such risks, Meta's submarine cable will choose to bypass some geopolitically tense areas.

Additionally, the U.S. Federal Communications Commission (FCC) announced in November this year that it plans to review submarine cable licenses for the first time in decades, partly due to national security and cable ownership considerations. If the ownership and control of these cables are dispersed among multiple companies and countries, it could lead to data security risks. Meta hopes to be the sole owner so that it can fully control the security of the cable, ensuring that the data transmitted through the cable is not subject to external interference or monitoring.

Third, paving the way for AI and the Indian market

Analysts point out that Meta's third motivation is more forward-looking and may be closely related to AI development. According to fiber optic submarine cable expert Sunil Tagare, Meta has the opportunity to build data center capacity in India specifically for training and running AI models. India has a clear advantage in computing bandwidth costs, and with the rapid development of AI technology, India is expected to become the "world capital" for AI training.

Moreover, India is one of Meta's largest markets, with over 1 billion users across Facebook, Instagram, and WhatsApp. With significant investments in the data center market, India still has substantial growth potential, making it a strategic focus for Meta. Therefore, Meta's submarine cable is not only intended to support global communication but may also provide support for its AI infrastructure development in India