Meta’s $10B Global Subsea Cable: A Strategic Play for AI, Connectivity, and Resilience

Meta, the parent company of Facebook, Instagram, and WhatsApp, is embarking on its most ambitious infrastructure project yet: a 40,000+ kilometer subsea fiber-optic cable that could cost more than $10 billion. This massive undertaking marks the first time Meta will fully own and operate such infrastructure, highlighting its drive to control the flow of data powering its platforms and AI ambitions.

The Scope and Purpose of Meta's Subsea Cable

• Global Reach: The cable is planned to span from the U.S. to India via South Africa and return via Australia, forming a "W" shape around the globe.
• Dedicated Use: Unlike previous consortium projects, this cable will be exclusively owned and utilized by Meta, ensuring priority for its platforms and services.
• Infrastructure Sovereignty: The project represents a shift away from relying on traditional telecom carriers, aligning Meta with other tech giants like Google in owning critical digital pathways.

Strategic Drivers Behind the Investment

1. Ensuring Network Quality for Billions of Users:
   Meta’s platforms account for 10% of all fixed and 22% of all mobile internet traffic globally. Owning a dedicated cable ensures robust and reliable connections for services like video delivery, AI tools, and advertisements.
2. Supporting AI Advancements:
   Meta’s burgeoning AI capabilities will benefit from the data bandwidth provided by this infrastructure. Notably, the cable's endpoint in India aligns with speculation about establishing AI training facilities there. India offers low-cost compute bandwidth, making it a compelling location for large-scale AI development.
3. Mitigating Geopolitical Risks:
   The cable route strategically avoids geopolitical hotspots such as the Red Sea, South China Sea, and Straits of Malacca—all prone to conflict or disruption. This resilience ensures uninterrupted data flow amidst global tensions.
4. Boosting Emerging Markets:
   India, with its vast and growing user base across Meta’s platforms, is a key focus. The country leads in active users for Facebook (375M+), Instagram (363M), and WhatsApp (536M+). Reliable infrastructure here supports Meta’s efforts to deepen market penetration and expand AI-driven tools.

Challenges Ahead

• High Costs and Limited Resources:
  The subsea cable industry faces tight supply and high costs, with ship availability booked years in advance. Building in phases could stretch the timeline.
• Regulatory Hurdles:
  The U.S. Federal Communications Commission (FCC) has announced a review of submarine cable licensing, focusing on national security and ownership, which could impact Meta’s plans.

A Glimpse Into the Future

Meta’s project underscores a larger trend where tech giants increasingly invest in owning their data infrastructure. This strategic move not only reduces dependency on telecom carriers but also positions Meta to shape global internet usage patterns, particularly in markets like India, where growth potential remains significant.

As the project unfolds, Meta is expected to make a formal announcement in early 2025, detailing the cable’s route, capacity, and broader strategic implications. While it will take years before the cable becomes operational, its eventual completion will mark a significant milestone in Meta’s evolution as both a technology and infrastructure powerhouse.