Big Tech’s $13 Billion Undersea Race: AI Boom Triggers Massive Cable Investment
The global demand for Artificial Intelligence (AI) is causing a huge spending surge. This spending is focused on underwater communication cables. Over 95% of international data traffic uses these subsea cables. They transmit everything from emails to financial transactions worldwide.
Investment in new cable projects is booming. It is projected to reach about $13 billion between 2025 and 2027. This amount is almost double the investment made in the previous two years.
Big Tech companies are driving this trend. Tech giants like Meta, Google, Amazon, and Microsoft are heavily funding new cables. They need this massive infrastructure to support their growing AI operations. The new cables boost both the speed and reliability of the global internet. The need for vast, high-speed data transfer makes undersea cables a vital part of the current AI buildout.