Meta plans to invest $10 billion in subsea cable ownership

In recent months, Meta Platforms Inc has made significant decisions regarding infrastructure development, specifically focusing on a vast fiber-optic subsea cable project. This cable, which is planned to stretch approximately 40,000 kilometers, aims to facilitate global data traffic by establishing a dedicated connection from the east coast of the United States to India, routing through South Africa. After reaching India, the cable will then link to the west coast of the U.S. via Australia. Such an ambitious project is intended to enhance Meta's internet traffic capabilities, as the platforms under its umbrella—including Facebook, Instagram, and WhatsApp—account for a notable share of internet usage worldwide. Meta's budget for this project starts at $2 billion, with expectations for the total investment to rise to $10 billion over time as efforts progress over the next five to ten years. Insights from subsea cable expert Sunil Tagare have shed light on the complexities and financial expectations associated with such extensive infrastructure initiatives. The initiative is seen as part of Meta's broader strategy to secure ownership of essential web infrastructure, putting it in competition with companies like Alphabet Inc., which operates in numerous cable routes. Importantly, Meta is already a part-owner of 16 existing networks, underpinning its established footprint in the telecommunications space. The company, under the leadership of Santosh Janardhan, has been actively pursuing advancements in its global infrastructure. Furthermore, the potential for AI-driven enhancements bolsters the positive outlook on this project, with analysts from BofA Securities praising Meta's AI initiatives. As Meta continues to expand its role in the global internet space, these investments reflect a significant commitment to ensuring its platforms can handle ongoing and future user demands effectively. Overall, this venture signifies Meta's ambition to bolster its infrastructure capabilities and establish predominant control over data pathways crucial for its success in the rapidly evolving digital landscape.