Share the post "Meta Announces $10 Billion Plan to Build 40,000 km Underwater Fiber Optic Cable"
Meta, the parent company of Facebook, Instagram and WhatsApp, continues to strengthen its position as one of the largest players in the Internet infrastructure. Meta plans to build a large-scale underwater fiber optic cable with a length of more than 40,000 km, covering the entire globe. This ambitious project will require investments in excess of $10 billion, making Meta the sole owner and user of the cable — a first for the company.
Strategic Reasons For Investments Improving
- Traffic Quality: With the increasing use of the Internet, Meta, which serves 10% of fixed and 22% of mobile traffic worldwide, needs to ensure reliable and high-speed data transmission. Own cable will allow the company to optimize the traffic flow, reducing dependence on third-party providers.
- Development of AI and Data Centers: Meta is considering the possibility of creating a data center in India, which will reduce the cost of computing power and accelerate the training of artificial intelligence models. The submarine cable will be a key element of this infrastructure.
Current Stage and Prospects
- The project is in the early stages of development. The initial budget is $2 billion, but as we move forward, it may increase to more than $10 billion. Meta is expected to officially announce the details of the project in early 2025, including the route, capacity and construction justification.
Conclusion
This step will allow Meta to ensure reliable data transmission, increase security and support the development of artificial intelligence, strengthening its position in the global Internet market. In the long run, such investments are likely to pay off, providing Meta with a sustainable advantage in the rapidly developing digital world.
Market Impact
I think Meta shows a very ambitious and strategically important step. Despite the high initial costs and risks, this project can significantly improve and strengthen the Meta company in the world and open up new opportunities for innovation
Sources:
1 https://san.com/cc/meta-to-build-10b-global-underwater-internet-cable-report/
2 https://techcrunch.com/2024/11/29/meta-plans-to-build-a-10b-subsea-cable-spanning-the-world-sources-say/
3 https://www.linkedin.com/pulse/map-metas-w-cable-sunil-tagare-blanc/
Made with usage of CoPilot
It will be interesting to see how this impacts the broader internet ecosystem and competition with existing providers.