Summary Bullets:

• Meta has announced it will build a 50,000km subsea cable connecting five major continents, including the United States, Brazil, South Africa, and India.
• Project Waterworth is likely to cause further disruption for wholesale operators as the company looks to dominate global internet connectivity.

Meta announced it will build the world’s longest and highest capacity subsea cable system spanning over 50,000km (31,000 miles), connecting Brazil, India, the US, South Africa and other regions. The new venture, dubbed Project Waterworth, is expected to enhance global connectivity and bring Meta significant opportunities in the AI space, particularly in the Indian market, along with new economic growth for the countries associated with the project. The proposed network will use 24 fiber pairs, which will boost data capacity and internet speed across connected regions and will be laid at depths of up to 7,000 meters (23,000 feet) to avoid damage from ship anchors and other hazards, while evading any high-risk geopolitical regions. This announcement from Meta could also play a role in the expansion of cloud computing, data centers, and other emerging AI-driven advancements. Project Waterworth is likely to cause further disruption for wholesale operators as the company looks to dominate global connectivity.

Project Waterworth, while ambitious, aligns with Meta’s broader ambitions in AI and digital connectivity. Meta will be the sole owner of this investment, shifting from a shared ownership model in other previous constructions. Project Waterworth comes at a time when the security of such critical infrastructure has never been more under the spotlight by governments following a recent spate of cable cuts globally, including in the Baltics and Taiwan Strait. Given the importance of the infrastructure and size of the project, it’s likely that the project will be under intense scrutiny. Meta will have to navigate a lot of red tape with various governments while addressing data sovereignty and security concerns, adding to the complexity of the rollout. However, the company can leverage lessons from its involvement in the consortium of the 2Africa cable build, which may help it navigate some of the challenges. The company has yet to provide further specifics of the build, including the start or expected completion date, though Meta has indicated the project will be a multi-year investment.

While telecom operators continue to navigate the challenges driven by advancements in AI, big tech is expected to continue to forge ahead, pumping billions of dollars into the construction of new subsea cable infrastructure, enabling them to bypass traditional telecom providers and reducing their reliance on third-party network providers. While it’s still early days and a lot of the details have yet to be disclosed, especially if Meta will allow other operators to access its infrastructure, Project Waterworth will cause further disruption to the wholesale telecommunications market. Wholesale operators need to review their global connectivity strategy with a view to diversify their global networks beyond key international routes, while embracing new technologies to enhance their service offerings. In addition, operators should look to strengthen their relationships with other operators through alliances to position themselves as reliable alternatives.