Subsea Cable System Activity Booming Globally: Xona Partners
In 2025 there were 15 new submarine cable systems, and 2026 is expected to add nearly 40 more, the highest annual total in more than a decade, Xona Partners said Wednesday in a white paper. It said investment is geographically broad, with intra-Asian routes attracting the most capital -- $1.2 billion over the past three years. More than 1.48 million kilometers of cable are in service today, and that number could grow 48% by 2040. Rather than financing new systems, the industry's big challenge is scaling repair capacity, governance and resilience at a pace that matches construction, Xona added.
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The firm also said hyperscalers are reshaping subsea network design by expanding capacity for AI and cloud distribution, with their investments going beyond traditional trans-Atlantic and trans-Pacific routes to the Middle East, Africa, India, Oceania, Latin America and secondary Asian markets. Geopolitics are now central in route planning, it said: It's becoming tougher to get Chinese permits for systems crossing the South China Sea, while the U.S. opposition to direct China-to-U.S. links has pushed new Southeast Asia/U.S. routes. Governments increasingly see subsea cables as strategic assets tied to maritime domain awareness and national security, all of which influence routing, ownership and financing, Xona said.