Free Trial

Google partners with Chile to deploy a trans-Pacific submarine cable

Chile Transport Minister Juan Carlos Munoz speaks during a plenary session at the COP29 U.N. Climate Summit, in Baku, Azerbaijan, Nov. 20, 2024. (AP Photo/Sergei Grits, File)

Key Points

  • Google and Chile signed an agreement to deploy the 14,800-kilometer Humboldt Cable connecting Valparaíso to Sydney via French Polynesia, scheduled for deployment in 2027.
  • The project, valued at $300 million to $550 million with Chile contributing $25 million, aims to establish Chile as a major digital hub and data gateway for the Asia-Pacific.
  • The cable will be open for use by other technology, mining and banking firms, addressing surging demand for undersea connectivity driven by cloud computing services.
  • The initiative could heighten geopolitical tensions as Chile navigates rivalries between China and the United States over critical undersea infrastructure.
  • MarketBeat previews top five stocks to own in July.

SANTIAGO, Chile (AP) — Google signed an agreement with Chile on Wednesday to deploy an undersea fiber optic cable connecting South America with Asia and Oceania, a first-of-its-kind project that aims to cement the South American country’s status as a major digital hub.

The Humboldt Cable, envisioned for deployment in 2027, is a 14,800-kilometer (9,200-mile) submarine data cable that will connect Chile’s coastal city of Valparaíso with Sydney, Australia through French Polynesia.

The initiative is being launched almost a decade after it was first proposed in 2016, and six years after the initial studies to determine its feasibility.

“This is the first submarine cable in the South Pacific, so it's an important commitment", Chilean Transport Minister Juan Carlos Muñoz told journalists.

Chile, home to one of Google's largest data centers in Latin America, is currently connected to the United States and the rest of the region via an undersea cable. This cable also provides Chile with a longer route to other continents.

Officials from both Google and the Chilean government hailed the project as critical infrastructure with potential to attract millions of dollars in investment from major tech companies, mining and banking firms in Chile and Australia.

“The idea of ​​building this cable is that it can also be used not only by Google but also by other users, such as technology companies operating in Chile,” said Cristian Ramos, director of telecommunications infrastructure for Latin America at Alphabet, Google’s parent company.

Although Google did not disclose its total investment, Patricio Rey, general manager of local partner Desarrollo País, a state-owned infrastructure company, estimated the cable project’s value at $300 million to $550 million, with Chile contributing $25 million.

The Humboldt Cable will establish Chile as a data gateway for the Asia-Pacific, while strengthening its relations with Asian nations, especially China, its largest trading partner. It also comes as demand for undersea cables surges due to increased reliance on cloud computing services.

The next stages involve installing the submarine cable, selecting and contracting a telecommunications operator, and constructing landing stations in Chile.

The initiative could heighten tensions as Chile finds itself caught in the middle of an intensifying rivalry between China and the Trump administration. Undersea cables have long been flash points in geopolitical disputes.

____

Follow AP’s coverage of Latin America and the Caribbean at https://apnews.com/hub/latin-america

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

13 Stocks Institutional Investors Won't Stop Buying Cover

Which stocks are hedge funds and endowments buying in today's market? Enter your email address and we'll send you MarketBeat's list of thirteen stocks that institutional investors are buying now.

Get This Free Report
Like this article? Share it with a colleague.

Featured Articles and Offers

Recent Videos

3 Dirt-Cheap Stocks in a Market That’s Getting Expensive
Top 3 Defense Stocks to Profit From $175 Billion Golden Dome
Top 5 Stocks for June: AI Picks That Aren’t NVIDIA

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines