Alphabet’s Google signed an agreement with the Chilean government on Wednesday to build a 14,800 kilometer submarine data cable across the Pacific Ocean.
The cable will connect Chile with Australia and Asia and is expected to be operational by 2027.
The deal is the first of its kind between Google and a country. It aims to improve Chile’s digital links with Asian countries, including China, Chile’s largest trading partner, and support Chile’s goal to become a regional hub for Latin America.
Chile’s Transport Minister Juan Carlos Muñoz called the project the first submarine cable in the South Pacific and an important strategic partnership. Cristian Ramos, head of telecommunications infrastructure for Alphabet’s Latin American unit, said the cable will be open for use by other companies, including technology firms in Chile.
The project comes amid growing competition between China and the United States for influence in Latin America, with submarine cables seen as key infrastructure in this rivalry.
Chilean officials estimated the project’s cost between $300 million and $550 million. Chile will contribute $25 million, according to Patricio Rey, general manager of Desarrollo Pais, a state-owned partner in the venture.
Officials said the cable could improve the performance of Asian platforms like TikTok, help transmit astronomical data, and support mining operations in Chile and Australia.
Deputy Secretary of Telecommunications Claudio Araya said mining companies with operations in both countries could use the cable to create shared command centers.
The cable will connect Valparaiso in central Chile to Australia and is planned for deployment next year. Chile’s Desarrollo Pais is exploring a link from the cable to Argentina through a border crossing.
The partners plan to find an operator to manage the cable’s capacity, though no final decision is expected before the end of the year.
Araya said the project could encourage similar efforts to connect South America with Asia. Chile is also planning a submarine cable to link the southern tip of South America with Antarctica for research purposes.
