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Underwater Cables: The Hidden Arteries of the AI Boom and Global Internet

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Deep beneath the oceans lies one of the most crucial — yet least visible — components of modern life: underwater communication cables. Nearly 95% of the world’s international data and voice traffic flows through this vast network of almost one million miles of fiber-optic lines connecting continents.

These cables carry everything from financial transactions and government communications to video calls, cloud services, and AI data transfers. As artificial intelligence grows more data-hungry, investment in subsea infrastructure is accelerating at record speed.

Between 2025 and 2027, global spending on subsea cables is expected to reach $13 billion, nearly double the investment made over the previous three years, according to TeleGeography.

“AI is increasing the need that we have for subsea infrastructure,” said Alex Aime, vice president of network investments at Meta. “Without that connectivity, you just have expensive warehouses.”

Tech giants are now the biggest investors. Meta’s Project Waterworth, a 50,000-kilometer cable linking five continents, will be the longest in the world. Amazon’s Fastnet, connecting the U.S. and Ireland, will deliver speeds equivalent to streaming 12.5 million HD movies simultaneously. Google has funded over 30 subsea systems, while Microsoft has invested in others to bolster its Azure cloud network.

But as global reliance on these cables deepens, so do concerns about security and resilience. Damaged or sabotaged cables can cut off entire nations — as seen when Tonga lost internet access after a volcanic eruption in 2022.

While most damage stems from accidents — fishing nets or dropped anchors — analysts have noted a rise in suspected sabotage near Taiwan and in the Baltic Sea, often coinciding with geopolitical tensions. In response, NATO launched “Baltic Sentry” in early 2025 to protect critical subsea infrastructure.

The U.S. Federal Communications Commission (FCC) has also tightened rules on foreign ownership of cable systems, citing threats from China and Russia. “We’re making it difficult to connect undersea cables directly from the U.S. to adversary nations,” said FCC Chair Brendan Carr.

From the 1850 telegraph line between Dover and Calais to AI-era fiber networks, subsea cables remain the unseen lifeline of global communication — and the quiet battleground of the world’s next digital conflict.

Microsoft Signs $9.7 Billion Cloud Deal with IREN to Boost AI Computing Power

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Microsoft has signed a $9.7 billion cloud computing deal with U.S.-based data center operator IREN to expand its artificial intelligence infrastructure and ease ongoing computing bottlenecks. The agreement, which includes access to Nvidia’s powerful GB300 chips, underscores the growing global demand for AI processing capacity.

Shares of IREN surged nearly 25% to a record high following the announcement before settling up around 10%. Dell Technologies, which will supply Nvidia’s advanced chips and related equipment to IREN, also gained about 1%. Under the five-year agreement, Microsoft will use roughly $5.8 billion worth of IREN’s computing hardware and infrastructure capacity.

The deal allows Microsoft to scale its AI operations without immediately building new data centers or acquiring additional power resources — key hurdles that have limited the company’s ability to meet soaring demand for applications like ChatGPT and Copilot. The approach also helps reduce heavy capital spending on rapidly depreciating hardware as newer processors enter the market.

IREN operates data centers across North America with a total capacity of 2,910 megawatts. The Nvidia chips will be deployed in phases through 2026 at the company’s 750-megawatt facility in Childress, Texas, which will include liquid-cooled centers providing 200 megawatts of new IT capacity.

The deal follows Microsoft’s recent $17.4 billion agreement with AI cloud provider Nebius and reflects the company’s strategy to leverage “neocloud” partners such as IREN and CoreWeave to expand capacity. IREN said Microsoft’s prepayment will help fund its $5.8 billion Dell contract, though the deal could be canceled if deadlines are missed.

The Global AI Buildout Accelerates as Tech Titans Drive Record Investment

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The global race to build artificial intelligence infrastructure shows no sign of slowing, as technology giants and industrial firms alike pour trillions into data centers, chips, and computing power. Nvidia’s market value soared past $5 trillion this week — a milestone that underscores how central AI has become to the global economy.

In a whirlwind week for the tech sector, Microsoft and OpenAI struck a landmark deal expanding the ChatGPT maker’s fundraising capacity, while Amazon announced 14,000 corporate job cuts just days before its cloud division reported its fastest growth in nearly three years. Together, these developments highlight AI as the defining engine of modern corporate spending and stock market momentum.

AI’s impact now extends beyond Silicon Valley. Over 100 non-tech companies — from Honeywell and GE Vernova to Caterpillar — referenced data centers in their earnings calls, signaling how deeply AI demand is reshaping industrial supply chains. Caterpillar’s data center equipment sales jumped 31% last quarter, reflecting the sector’s explosive growth.

Goldman Sachs projects global AI-related infrastructure spending could reach up to $4 trillion by 2030. Microsoft, Amazon, Meta, and Alphabet are expected to collectively invest around $350 billion this year alone. Meanwhile, AI investment is fueling international trade, with the U.S. importing vast quantities of semiconductors from Taiwan, South Korea, and Vietnam.

Despite talk of an AI “bubble,” companies continue to ramp up spending. Apple plans to significantly boost AI investments, and Amazon is projecting capital expenditures of $125 billion in 2025. Economists say this phase of the AI revolution remains in its early stages — with innovation advancing faster than any technology cycle in recent history.