Google Invests $1B In Subsea Cables To Strengthen US-Japan Digital Connectivity

Alphabet Inc‘s GOOG GOOGL Google has committed $1 billion to enhance digital connectivity between the U.S. and Japan by introducing two new subsea cables, Proa and Taihei. 

What Happened: The new cables aim to bolster connectivity between the U.S. and Japan, and with several Pacific island nations and territories, Reuters reports.

This development follows a joint funding agreement between the U.S. and Australia last October to support subsea cable projects in the Pacific, indicating a broader collaborative effort with allies to create more secure and resilient networks.

The strategic importance of the Pacific region has escalated, with the U.S. and China vying for influence through various infrastructure and military partnerships. 

Also Read: Meta-Backed Undersea Cable Project Reportedly Delayed By China Over Spying Fears

Why It Matters: This initiative aligns with President Joe Biden and Japanese Prime Minister Fumio Kishida‘s efforts to strengthen ties between the two nations. Biden met with Kishida in the Oval Office at the White House on April 10.

Biden emphasized the significance of telecommunications for national security, advocating for U.S. leadership in the sector to control global information flows.

Google’s investment includes plans for the Proa cable to link the U.S., Japan, the Commonwealth of the Northern Mariana Islands (CNMI), and Guam. 

The Taihei cable will connect the U.S., Japan, and Hawaii, and an additional interlink cable is planned to connect Hawaii, CNMI, and Guam. 

Google is partnering with Japanese companies like KDDI and Arteria Networks, the Philippines-based Citadel Pacific, and the CNMI to enhance regional digital infrastructure. 

These subsea cables, crucial for internet functionality, transmit 99% of the world’s data traffic.

A March 2021 report indicated that Meta Platforms Inc META is funding two new transpacific subsea cables connecting Singapore to the western coast of the U.S., with Google participating in one of the projects. 

In 2024, Alphabet reportedly collaborated with the Chilean government to establish the first undersea cable connecting South America with the Asia Pacific region.

In 2023, Google launched its first data center in Japan.

GOOGL stock gained over 48% in the last 12 months. Investors can gain exposure to the stock via Vanguard Communication Services ETF VOX and IShares Global Comm Services ETF IXP.

Price Action: GOOGL shares traded higher by 0.30% at $156.60 premarket on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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