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Subsea cables power the data centre-driven digital economy
The internet as we know it would not exist without the vast, largely invisible network of subsea cables lying deep beneath the ocean’s surface. Stretching across thousands of kilometres, these cables are the arteries of the global digital economy, carrying over 95% of the world’s data traic. Teraco here looks at increasing investments in this infrastructure to serve escalating data demand, globally.
Left: Subsea cables connect countries – and they connect large ecosystem data centres which have become critical points of presence for subsea cable operators. Right: Internet traffic is doubling every two years, demanding faster and more dense connections.
R esearch by TeleGeography indicates that, in 2025, there were 570 in-service subsea cable systems worldwide, with an additional 81 systems planned, a record high within the past two decades. This explosive growth is being driven by soaring global data demand, the rapid rise of artificial intelligence (AI), and the need for more resilient, high-capacity connectivity. Surge in investment According to TeleGeography’s Transport Networks Research Service, investment in subsea cables has accelerated at an unprecedented pace. Over the past nine years, an average of $2 billion has been spent annually on new cable construction. However, between 2025 and 2027, spending of more than $13 billion in additional subsea cables is expected. Since the early 2000s, when state-backed enterprises and telecom consortiums dominated, the investment landscape has changed. Today, technology giants like Amazon, Google, Meta, and Microso¤ are leading the way, building private subsea cables to interconnect their global data centre networks directly and deliver low-latency, high-capacity services to users worldwide. Several factors are driving this surge in subsea infrastructure investment: exponential data growth, content provider dominance, network resilience, and the ageing of existing subsea cable infrastructure. Internet tra§ic is doubling every two years, demanding faster and more dense connections. Tech giants now account for most of the subsea bandwidth usage, prompting them to build their own cables instead of leasing capacity. Enterprises increasingly require mesh networks that span multiple cables to ensure business continuity during outages. Some legacy cables are nearing the end of their lifespan, requiring next-generation systems with significantly higher capacity and lower unit costs.
The future of connectivity Trends shaping the future of subsea connectivity include: the rise of interconnections within data centres, geographic diversity and network resilience, technological advances, sustainability and climate resilience, and security and maintenance. Subsea cables connect countries – and they connect data centres. With AI workloads, streaming platforms, and cloud computing demanding massive throughput, large ecosystem data centres have become critical points of presence for subsea cable operators. The closer a business is to these hubs, the lower its latency, and the faster its access to global markets. Many cables are being built along new routes to connect previously underserved regions, particularly in Africa, Southeast Asia, and South America. By diversifying routes, operators reduce the risk of single points of failure and enhance disaster recovery capabilities. New cable technologies are enabling faster data transfer speeds, increased capacity, and greater durability. Improved fibre designs, advanced materials, and innovative deployment methods are allowing operators to manage greater demands and navigate challenging seabed conditions. Climate change has created new risks, including stronger ocean currents, severe storms, and increased seabed instability. In response, cable operators are burying cables deeper, using reinforced designs, and selecting routes more carefully to strike a balance between environmental impact and connectivity needs. With an average of 150 to 200 cable faults reported globally every year, proactive monitoring and maintenance are essential. Furthermore, national security concerns have prompted increased investment in physical and cybersecurity measures to protect the world’s digital backbone.
4 Electricity + Control DEC 2025 - JAN 2026
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