Meta likely to invest $10 billion in subsea cable, eyes India for AI growth

Meta is preparing for a groundbreaking infrastructure project: a 40,000+ kilometer subsea fiber-optic cable encircling the globe. The initiative, expected to cost over $10 billion, marks the first time Meta will own and operate a subsea cable exclusively. Sources close to TechCrunch confirmed the plans, which aim to secure seamless data flow for its platforms like Facebook, Instagram, and WhatsApp.
According to the report, the plan begins with a $2 billion budget, but as it scales, the cost could exceed $10 billion.
The cable will follow a “W” route, connecting the US east coast to India via South Africa and returning to the US west coast via Australia. The route “avoids areas of geopolitical tension,” a source close to Meta revealed, the report said, referring to recent incidents where subsea cables were damaged by conflict, such as in the Red Sea and the Baltic Sea.
The technology media company highlighted India’s pivotal role in the project. “India could become the training capital of the world,” the source was quoted as saying, citing Meta’s potential plans to build AI training facilities and data centers in the country.
India is Meta’s largest market, with more than 375 million Facebook users, 363 million Instagram users, and 536 million WhatsApp users. The country’s enthusiasm for emerging features like AI tools, combined with a growing data center market, underscores its importance in Meta’s strategy.
The project reflects a shift in the tech industry, with companies like Meta and Google increasingly investing in private subsea cables to control their data infrastructure. “Tech companies want direct ownership of the pipes needed to deliver content, advertising and more to users around the world,” the source said as per the report.
Beyond business advantages, geopolitical considerations are also driving the move, the report noted, saying recent attacks and damages to submarine cables have highlighted vulnerabilities in traditional routes, and Meta’s cable seeks to mitigate these risks while ensuring uninterrupted service to its platforms.
Although the project is in its early stages, as per the sources cited in the report, Meta will announce details in early 2025. However, challenges loom, including limited availability of manufacturers which are already engaged with other major clients.
“AI is part of Meta’s long-term infrastructure roadmap, …. it’s too soon to say whether AI is part of the equation for Meta in this project, describing it as part of the “long tail” of considerations and possibilities,” the source was quoted as saying.
Meta declined to comment on the project, the report added. However, as the tech giant aims to expand its global reach and cement its infrastructure dominance, this subsea cable could become a cornerstone of its future operations.