Meta's Ambitious Submarine Cable Project
Meta, the second largest driver of global internet traffic, is embarking on an ambitious project to construct an independent submarine cable that will span over 40,000 kilometers. This initiative, which could exceed $10 billion in total investments, aims to enhance internet connectivity across the globe. Analysts from Telegeography indicate that Meta's users and servers account for about 10% of all internet traffic and 22% of mobile traffic, highlighting the significance of this project in supporting its infrastructure.
Strategic Reasons Behind the Investment
The decision to build an independent submarine cable is driven by several strategic factors. Firstly, owning this cable will allow Meta to prioritize data traffic on its platforms, ensuring quality service for its growing user base outside North America, where its revenue is reportedly larger. Furthermore, the cable's planned route, which avoids geopolitical hotspots like the Red Sea and South China Sea, aims to mitigate risks associated with potential disruptions caused by conflicts.
Future Prospects and AI Development
Meta's project also aligns with its broader strategy to invest in artificial intelligence (AI). The cable's endpoint in India presents an opportunity for Meta to establish a dedicated data center for AI projects, capitalizing on the country's lower computing costs. With a substantial user base in India across platforms like Facebook, Instagram, and WhatsApp, the company is poised to leverage this infrastructure to enhance its AI capabilities and services. Meta is expected to provide more details about the project in early 2025, including its route and capacity.
