Samanth Subramanian on the Undersea Cables That Keep the Internet Alive | Odd Lots
From Odd Lots
Samanth Subramanian•Author, 'The Web Beneath the Waves' and Acting Manager Editor, Equator
Executive Summary
The physical infrastructure of the internet, primarily subsea fiber optic cables, is increasingly a focal point of geopolitical tension, particularly between the U.S.
A handful of U.S.
tech giants (Google, Meta, Amazon, Microsoft) now dominate the funding and ownership of new subsea cables, raising concerns about the centralization of the internet and creating leverage over developing nations.
Geographic chokepoints like the Red Sea and the Strait of Hormuz represent critical vulnerabilities where malicious actors could significantly disrupt global internet traffic.
The explosive growth of AI is creating a massive new wave of demand for data transit, driving a new cycle of investment and construction in the subsea cable industry.
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Concerns Raised
Geopolitical conflict (U.S.-China, Russia) could lead to deliberate cable cutting and a 'bifurcated' internet.
The concentration of cable ownership by a few U.S. tech giants threatens the internet's openness and creates power imbalances with developing nations.
Physical vulnerability of cables at critical chokepoints like the Red Sea and Strait of Hormuz poses a systemic risk to global connectivity.
Opportunities Identified
The massive data demand from the AI boom is creating a significant growth cycle for the subsea cable industry.
Nations are financing new, diversified data corridors to bypass traditional chokepoints, creating new routes and investment opportunities.
Technological advancements like wave division multiplexing continue to exponentially increase the data capacity of fiber optic cables.