Geopolitics and Security Alliances

AI Demand Fuels $13 Billion Investment in Strategic Undersea Cables

A significant surge in investment in undersea cables, projected to reach $13 billion between 2025 and 2027, is driven by the increasing demand for cloud services and AI technologies, with major firms like Meta and Amazon leading this charge. These cables are essential for providing high-performance, low-latency connectivity necessary for AI operations, yet their strategic importance makes them vulnerable to disruptions, whether accidental or deliberate, particularly amid rising geopolitical tensions involving Russia and China. In response, NATO has initiated protective operations, while the U.S. is tightening regulations on foreign participation in these critical infrastructures to mitigate espionage risks. This escalating competition for subsea infrastructure underscores the intertwined nature of global connectivity and security.

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