Google will build a 14,800-kilometre (9,196-mile) submarine data cable across the Pacific Ocean to enhance digital connectivity between Australia, Latin America and Asia, according to media reports.
The Alphabet (NASDAQ: GOOG) subsidiary announced the project during a meeting in the Chilean capital Santiago on Wednesday, Reuters reported.
No cost was disclosed but Chilean officials have previously put it at between US$300 million (A$462 million) and $550 million with Chile investing $25 million.
The new cable from Valparaíso in central Chile to Australia is planned to be working by 2027.
“This is the first submarine cable in the South Pacific, so it's an important commitment in that we have an extraordinary strategic partner for a cable that should be operational in 2027,” Chile’s Transport Minister Juan Carlos Muñoz told journalists.
Azzet approached the Australian Government for comment but received no response at the time of writing.
Alphabet’s Latin American head of telecommunications infrastructure Cristian Ramos said the cable would be open to other users including global technology firms in Chile.
“This will not be an exclusive asset for Google,” he said.
Undersea data cables are assuming an increasingly important role in the global technology industry as the United States and China compete in Latin America.
Reuters reported that the cable could significantly improve the performance of data-intensive platforms such as TikTok, allow the sharing of astronomical research in real-time, and support major industries like mining.
Chile’s Deputy Secretary of Telecommunications Claudio Araya said mining companies with operations in Chile and Australia could share a command centre by using a direct route.
Alphabet shares closed $1.68 (1%) higher at $169.39 on Wednesday, capitalising the company at $2.05 trillion.
