Meta plans $10bn subsea cable project to boost global infrastructure

• Published On: 30 November 2024 at 20:06

Mark Zuckerberg's Meta, the parent company of Facebook, Instagram, and WhatsApp, is reportedly planning to invest more than $10 billion in a massive underwater cable project spanning more than 40,000 kilometers.

This massive project, which is still in its early phases, would be Meta's first entirely owned and controlled subsea cable, according to persons familiar with the company's intentions.

The ambitious endeavor underscores Meta's growing commitment on improving its worldwide infrastructure. Techcrunch reported that the company's platforms account for 10% of all fixed and 22% of all mobile internet traffic worldwide.

The underwater cable is expected to have a "W" shape, connecting the United States, India, South Africa, and Australia, making it a historic project for Meta. Sunil Tagare, an industry expert who first reported on the plan in October, stated that the project's anticipated initial budget of $2 billion may climb as it moves forward.

"This is a monumental project, not only in terms of investment but also in its scale," Tagare told reporters. "The scarcity of cable-laying ships and resources might prompt Meta to take a segmented approach to construction."

While Meta has yet to confirm details, sources say a formal announcement—including the cable's route, capacity, and goals—is due in early 2025.

Meta confronts considerable logistical challenges in completing the project. The global supply of specialist cable-laying ships is already constrained, with other corporate behemoths such as Google signing contracts with companies like SubCom.

Ranulf Scarborough, a submarine cable industry analyst, stressed the tight market conditions, stating that Meta may need to implement a phased construction strategy, prolonging the schedule by many years.

The project is being led by Santosh Janardhan, Meta's head of global infrastructure, and is being developed from the company's operations in South Africa, highlighting the growing relevance of emerging markets in Meta's strategy.

Historically, telecom carriers controlled subsea cable construction and ownership. However, the advent of content-driven companies like as Meta has changed the dynamic, with internet corporations vying for direct control over the infrastructure that transmits content, advertising, and services around the world. This enables them to lessen their dependency on external providers while increasing operational efficiency.

Meta's entry into the subsea cable business is a long-term ambition to dominate global communication pipelines. If successful, the project will not only expedite data flow but also create new prospects in underdeveloped countries, bolstering Meta's global presence.