Project Overview and Significance
Google and the Chilean government have signed an agreement to deploy a 14,800 km submarine cable system connecting Australia and Asia across the Pacific Ocean. This project, expected to be operational by 2027, aims to enhance Chile’s digital connectivity with key trading partners like China and contribute to its ambition of becoming a Latin American hub.
Project Details and Benefits
This is the first submarine cable agreement between Google and a national government, allowing Chile to strengthen digital connections with countries like China, its primary trading partner. The cable will also be accessible to other users, including local technology companies.
The project’s timing is crucial as China and the United States vie for economic influence in Latin America, with submarine cables playing a pivotal role in technological competition among global powers.
Although the total investment amount hasn’t been disclosed, local sources estimate between $300 million and $550 million, with Chile contributing $25 million. The cable is expected to improve the performance of Asian social media platforms like TikTok, increase data flow, and benefit mining companies operating in Australia and Chile.
Impact on Various Sectors
The cable will link Chile’s central Valparaíso region to Australia, with deployment beginning next year. Authorities are also working on a connection from this new cable landing point to an Argentine border crossing.
The partners plan to soon initiate a search for an operator to commercialize the cable’s capacity, with a yet-to-be-defined business model. The project may also attract similar initiatives to connect South America with the Asian continent.
Moreover, Chile is planning to deploy another submarine cable connecting the southernmost part of South America with the Antarctic Peninsula, primarily for research purposes.
Key Questions and Answers
- What is the main objective of this agreement? The primary goal is to improve Chile’s digital connectivity with key trading partners like China and establish itself as a Latin American hub.
- Who are the main stakeholders in this project? Google and the Chilean government, with local technology companies also benefiting from increased digital connectivity.
- What are the potential benefits of this cable? Improved performance of Asian social media platforms, increased data flow, and benefits for mining companies in Australia and Chile.
- What is the estimated investment for this project? Local sources estimate between $300 million and $550 million, with Chile contributing $25 million.
- When will the cable be operational? The cable is expected to be fully operational by 2027.
