Google and Chile forge historic $400M trans-Pacific submarine cable to link South America with Asia and Australia

By willowt // 2025-06-05

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Google and Chile sign a landmark agreement to deploy a 14,800 km (9,196-mile) submarine cable, the first in the South Pacific, connecting Valparaíso to Australia and Asia by 2027.
The $400M project, partially funded by Chile’s government, aims to boost Chile’s role as a digital hub and strengthen ties with China, its top trading partner.
The cable will support mining operations, astronomical research and tech platforms like TikTok while offering open access to other firms.
Chile plans terrestrial extensions to Argentina and explores a future cable to Antarctica for scientific research.
The deal reflects U.S.-China tech rivalry in Latin America, with Google positioning itself as a neutral infrastructure player.

In a move that could redefine global connectivity, Google and Chile announced a historic partnership on June 4, 2025, to lay a 9,196-mile submarine data cable across the South Pacific—the first of its kind. The $400 million project, set for completion by 2027, will link Chile’s port city of Valparaíso to Australia and onward to Asia, slashing latency and shielding data from geopolitical espionage. The deal underscores Chile’s ambition to become Latin America’s digital gateway while navigating the U.S.-China tech cold war.

Humboldt cable desperately needed already

Submarine cables carry 99% of intercontinental internet traffic, yet the South Pacific has long been a gap in global infrastructure. The new cable—named Humboldt after the ocean current—addresses exploding demand from platforms like TikTok, cloud computing and Chile’s mining sector, which seeks real-time coordination with Australian operations. "It’s an extraordinary strategic partnership," said Chilean Transport Minister Juan Carlos Muñoz, noting the cable’s potential to attract tech investment. Google’s Latin America infrastructure head, Cristian Ramos, emphasized its open-access model: "Other entities, including tech firms in Chile, can use this cable."

Geopolitics beneath the waves

The project arrives as China and the U.S. vie for influence in Latin America through digital infrastructure. While the U.S. has scrutinized Chinese-built cables (like the now-defunct Havana-Miami link), Google’s involvement offers Chile a neutral alternative. The cable avoids U.S. surveillance risks—echoing Brazil’s $250 million Europe-linked cable, backed by Meta and Google to bypass NSA spying. Chile’s Deputy Telecom Secretary Claudio Araya hinted at broader ambitions: "This could inspire cables linking South America to Antarctica for research."

Economic ripples

Beyond tech, the cable promises transformative benefits for tourism and trade. Faster connectivity could streamline visa processing, enable AI-driven travel platforms and strengthen Chile’s lithium and copper exports to Asia by improving real-time logistics and supply chain coordination. Chile’s state fund Desarrollo País is already planning terrestrial spurs to Argentina, with Paraguay and Brazil expressing interest—potentially creating a South American digital corridor. "We’re testing the market with one fiber pair first," admitted Ramos, though the cable’s 16-pair capacity leaves ample room for expansion. Early adopters include research networks like CLARA and the European Commission, signaling confidence in the infrastructure’s scalability. Analysts predict that enhanced digital trade routes could attract foreign investment, positioning Chile as a regional tech hub while boosting GDP growth by an estimated 0.5% annually.

The road to 2027

Deployment begins in 2026, with a Chile-Australia operator to be selected by year’s end. Google’s existing data centers in Chile and Asia will replicate data across the new route, mirroring its U.S.-Chile backups. Yet challenges remain. Argentina’s stalled infrastructure projects—like state-run Arsat’s frozen investments—could delay terrestrial links. "We can’t tender a border crossing without knowing if Argentina will reciprocate," conceded Araya.

A connected future

The Humboldt cable is more than infrastructure—it’s a statement of sovereignty. By partnering with Google instead of Chinese firms like Huawei, Chile balances economic ties to Beijing with Western tech resilience. For global internet users, it means faster streaming, smoother Zoom calls and safer data. As the world’s digital arteries multiply beneath the ocean, Chile’s bet positions it as a 21st-century trade hub—where data, like the Humboldt Current, flows freely across once-distant shores. Sources for this article include: Reuters.com TravelandTourWorld.com BNAmericas.com