What's Happening?
Australian tech entrepreneur Bevan Slattery is spearheading a project to construct the world's longest direct subsea cable, named APX East, to address the growing demand for AI capacity. The cable, which will connect Sydney and San Diego, is estimated to cost AU$700 million (US$471 million) and is expected to be operational by the fourth quarter of 2028. The project aims to provide the lowest-latency path between the two cities, with extensions to Hawaii and Fiji anticipated by 2029. Slattery's firm, Subco, emphasizes the need for increased international capacity to support the anticipated growth in AI traffic, as AI companies plan to deploy significant data center capacity. The APX East cable is designed to mitigate permitting risks and accelerate
installation, positioning Australia as a leader in AI connectivity.
Why It's Important?
The development of the APX East cable is crucial for enhancing Australia's international connectivity, particularly in the context of AI advancements. As AI applications continue to expand, the demand for robust and high-capacity data transmission infrastructure becomes increasingly critical. This project not only addresses the immediate need for increased bandwidth but also positions Australia as a pivotal player in the global AI landscape. By providing a direct and efficient connection between Australia and the United States, the cable will facilitate faster data exchange, benefiting AI companies and potentially attracting more tech investments to the region. The initiative underscores the strategic importance of infrastructure in supporting technological growth and innovation.
What's Next?
Following the completion of the APX East cable, Subco plans to finalize the SMAP cable, another significant subsea system linking Australia's east and west coasts. This 5,000km cable, with a capacity of 400Tbit/s, represents the largest transcontinental capacity upgrade in Australia in nearly 25 years. The first services are expected to be available to customers by March, with full operation slated for May. As the global demand for data continues to rise, particularly in the Asia-Pacific region, the successful implementation of these projects could lead to further investments in subsea infrastructure, enhancing global connectivity and supporting the digital economy.
