Meta’s $10B Undersea Bet: Wiring the Future

Why it matters:

Meta’s (META) ambitious $10 billion undersea cable project isn't just about faster cat videos—it’s about securing a dominant position in the infrastructure of the internet, a foundation for its AI and metaverse ambitions.

Zoom Out

Meta is building a 24,000-mile undersea fiber-optic network, setting itself apart by owning the entire system outright. That’s a bold move in an industry where Big Tech is increasingly snapping up control of global data highways.

This isn’t just about keeping Instagram reels crisp or enabling smoother VR sessions. With AI driving up data usage and Meta accounting for 10% of fixed internet traffic and 22% of mobile, the project ensures it has the bandwidth to handle its expanding empire.

But it’s not without challenges: a tight supply of cable-laying ships and escalating costs could slow the rollout. Meta will likely tackle the project in segments, keeping investors guessing about the total timeline and budget.

Key Insights

• Owning the pipeline: Unlike shared infrastructure, Meta will have exclusive control, ensuring speed and security for its AI, metaverse, and social platforms.

• Rising data dominance: Big Tech now drives 71% of international cable capacity, up from just 10% a decade ago. This project puts Meta in the fast lane alongside Google (GOOGL) and Amazon (AMZN).

• Challenges ahead: With few suppliers and projects booked years in advance, logistics could be a bottleneck, potentially delaying ROI.

Market Pulse:
“Meta’s project underscores how undersea cables are the invisible backbone of the digital economy,” said subsea cable expert Sunil Tagare. "Whoever controls the cables, controls the internet."

The Bull’s Take:
Meta’s move signals long-term confidence in its AI and metaverse vision. While upfront costs are steep, exclusive infrastructure gives Meta a competitive moat. For investors, this underscores the tech giant's commitment to owning the rails of the internet.

Actionable takeaway: Keep an eye on infrastructure plays in Big Tech. If Meta succeeds, this could mark the next wave of AI-driven network innovation—one where owning the highway is as valuable as driving the traffic.