Subsea Cables: The New Geopolitical Battleground

Undersea cables, carrying over 95% of global data flows and trillions in daily financial transactions, are now a critical geopolitical focus. Australia, the UK, and the US are developing underwater drone technology by 2027 to enhance cable security, while Singapore leads a multinational framework for cooperation on critical infrastructure.

However, companies building Southeast Asia's digital networks face challenges from maritime bottlenecks and China's expanding sea presence. The Strait of Malacca, a vital chokepoint, sees many major cable projects now bypassing it due to congestion and risk.

China is increasingly using regulations and maritime enforcement to control cable infrastructure development in the South China Sea. This has led major tech firms like Google and Meta to redesign their Asia-Pacific networks, opting for more expensive routes to reduce exposure to Chinese influence and maintain network resilience.

Installers are reportedly avoiding the South China Sea due to Chinese regulatory hurdles and harassment tactics, forcing projects to reroute. For instance, the Asia Connect Cable System will skirt the region, and the Pacific Light Cable Network abandoned a Hong Kong connection.

Nations are working to reduce the reliance on Chinese vendors for cable infrastructure, fearing intelligence gathering or sabotage. Despite efforts to connect all Pacific Islands Forum members to the global network, the focus is shifting to data centers, where China could fill a gap if not addressed by allies like Japan.

Undersea cable security and expanding cable-laying capacity through groupings like the Quad and ASEAN are critical for the Indo-Pacific. However, efforts to curb Beijing's influence inadvertently concentrate power among a few American tech giants.