What's Happening?
At the PTC'26 conference in Hawaii, industry leaders from Google, Meta, and other major players discussed the growing pressures on Atlantic subsea cable infrastructure. With seven of the 21 Atlantic cables nearing retirement and hyperscalers like Google and Meta prioritizing
their own traffic needs, the industry is facing a potential shortfall in trans-Atlantic wholesale capacity by 2027. The panel highlighted the need for new routes and increased capacity to handle the rising demand driven by AI and data traffic.
Why It's Important?
The potential supply crunch in subsea cable capacity could have significant implications for global internet connectivity and data transfer, affecting industries reliant on fast and reliable data exchange. For the U.S., this could impact tech companies, financial markets, and any sector dependent on international data flows. The situation underscores the need for strategic investments in infrastructure to support the growing demands of AI and digital services.
What's Next?
Industry stakeholders may need to accelerate the development of new subsea cables and explore alternative routes to ensure sufficient capacity. This could involve increased collaboration between hyperscalers and traditional wholesale operators. Additionally, government intervention may be necessary to classify subsea cables as critical infrastructure, potentially leading to regulatory changes and public investment to support the industry's growth.
