How Undersea Cables Influence Onshore Connectivity

In the age of digital transformation, undersea cables play a pivotal role in connecting continents, facilitating global communications, and supporting the explosive growth of data demand.

These cables are the lifeblood of the internet, carrying vast amounts of data across oceans and directly influencing where data centers—critical infrastructures for data storage and processing—are established. With the growing demand for data storage and connectivity, the importance of cable landing stations (CLS) is more pronounced than ever.

It is crucial to explore the intricate relationship between undersea cables and data center site decisions, to confirm how connectivity shapes the global digital landscape.

The Growing Prominence of Subsea Cables in Global Internet Infrastructure

Subsea cables have a rich history, dating back to the mid-19th century with the first transatlantic telegraph cable. Over the years, these cables have evolved in capacity and technology, enabling instantaneous global communication and paving the way for the modern internet.

Today, there are over 400 active submarine cables connecting various continents, with a combined length of approximately 1.2 million kilometers (745,804 miles).

Notable examples include:

• MAREA: A transatlantic cable connecting Virginia Beach, USA, to Bilbao, Spain, capable of transmitting 200 terabits per second.
• BRUSA: Connecting the U.S. to Brazil, it significantly enhances connectivity between North and South America.
• DUNANT: Set to bolster global connectivity, this cable is backed by Google and promises high-speed data transfer.

These cables form the backbone of the internet, connecting data centers and enhancing global data flow.

The Strategic Impact of Cable Landing Stations (CLS)

Cable landing stations serve as crucial transition points where undersea cables connect to terrestrial networks. They convert “wet” (undersea) infrastructure into “dry” (onshore) infrastructure, allowing data to move seamlessly to and from the internet.
Proximity to CLS significantly influences data center site selection. For instance:

• Virginia Beach: The landing of BRUSA and MAREA has attracted substantial data center investments. The city has become a key player in the data center market, benefiting from tax incentives and infrastructure development.
• Loudoun County, Virginia: Known for its dense concentration of data centers, it has seen local economic growth thanks to its strategic positioning near key cable landings.

The influx of data centers in these regions has had profound impacts on local economies, creating jobs and increasing tax revenues.

The Interplay Between Subsea Cables and Onshore Data Centers

Data centers require robust connectivity to support cloud-based services and content-heavy platforms. Tech giants like Google, Microsoft, and Amazon are investing heavily in subsea cable infrastructure to ensure their services remain competitive and reliable.

While proximity to CLS is essential, another key driver for data center placement remains demand. Areas with large populations or significant economic activity, often referred to as “eyeball” markets, are prioritized. A few such examples include:

• Singapore: A global data hub, despite a moratorium on new data center developments, the existing infrastructure continues to thrive due to its strategic location.
• Los Angeles: Benefits from numerous undersea cables and a dense population, making it an attractive site for data centers.

The balance between cable landing proximity and demand for data is crucial in determining data center site decisions.

Key Markets and Emerging Trends in Subsea and Data Center Interactions

Southeast Asia is emerging as a significant player in the global data center market, with cities like Jakarta and Manila transforming into data center hubs due to new subsea cable installations. These developments are reshaping local economies and attracting foreign investments.

Cities like Marseille in France have new ecosystems around strategic cable routes. These areas are capturing traffic and fostering digital growth, making them essential players in the global digital landscape. While subsea cables offer significant benefits, challenges persist. Issues like power usage, land availability, and regulatory constraints in some locations hinder data center development. Innovative solutions, such as submarine cables landing directly in data centers (e.g., in Perth, Australia), are emerging to overcome these challenges.

So, the potential is huge and is worth focusing on right now.

India’s Subsea Cable Projects to Revolutionize Digital Connectivity

India’s upcoming subsea cable projects, including 2Africa Pearls, India-Asia-Express (IAX), and India-Europe-Express (IEX), are set to revolutionize the country’s digital infrastructure in the next 12 to 18 months. SMW-6, another note-worthy milestone, where Airtel is the Indian partner along with Singtel. These advanced fiber-optic networks will quadruple India’s internet capacity, enhancing connectivity across critical regions and driving digital transformation.

By boosting the speed and reliability of internet services, these cables are designed to support applications like 5G, AI, and cloud computing, attracting significant investments in data centers and digital services. With its strategic location and expanding subsea cable network, India is poised to become a global leader in digital connectivity, fueling economic growth and innovation across sectors.

The Future of Subsea Cables and Data Center Growth

Experts predict that the next decade will require an even greater number of undersea cables to support the growing need for connectivity.

The shift towards hyperscale and edge data centers is becoming increasingly relevant. These facilities are strategically located to reduce latency and meet local data demands, further highlighting the importance of subsea cables in supporting these developments.

The trend of tech giants owning and operating their own subsea cables and data centers is gaining momentum. This integration allows them to control their infrastructure and optimize performance across their global networks.

So, what’s ahead..

The relationship between undersea cables and onshore data center investments is clear. As the demand for data storage and connectivity grows, the importance of cable landing stations will only increase. The long-term impact of undersea cables on the global digital landscape will be significant, particularly in regions poised to benefit from enhanced connectivity.

Stakeholders in the data center industry must consider the proximity to subsea cables as part of their long-term strategy to remain competitive. In this dynamic environment, adapting to the interplay between subsea cables and onshore data centers will be crucial for future growth and innovation.