Google partners with Chile to deploy a trans-Pacific submarine cable
SANTIAGO, Chile (AP) — Google signed an agreement with Chile on Wednesday to deploy an undersea fiber optic cable connecting South America with Asia and Oceania, a first-of-its-kind project that aims to cement the South American country's status as a major digital hub.
The Humboldt Cable, envisioned for deployment in 2027, is a 14,800-kilometer (9,200-mile) submarine data cable that will connect Chile's coastal city of Valparaíso with Sydney, Australia through French Polynesia.
The initiative is being launched almost a decade after it was first proposed in 2016, and six years after the initial studies to determine its feasibility.
'This is the first submarine cable in the South Pacific, so it's an important commitment", Chilean Transport Minister Juan Carlos Muñoz told journalists.
Chile, home to one of Google's largest data centers in Latin America, is currently connected to the United States and the rest of the region via an undersea cable. This cable also provides Chile with a longer route to other continents.
Officials from both Google and the Chilean government hailed the project as critical infrastructure with potential to attract millions of dollars in investment from major tech companies, mining and banking firms in Chile and Australia.
'The idea of building this cable is that it can also be used not only by Google but also by other users, such as technology companies operating in Chile,' said Cristian Ramos, director of telecommunications infrastructure for Latin America at Alphabet, Google's parent company.
Although Google did not disclose its total investment, Patricio Rey, general manager of local partner Desarrollo País, a state-owned infrastructure company, estimated the cable project's value at $300 million to $550 million, with Chile contributing $25 million.
The Humboldt Cable will establish Chile as a data gateway for the Asia-Pacific, while strengthening its relations with Asian nations, especially China, its largest trading partner. It also comes as demand for undersea cables surges due to increased reliance on cloud computing services.
The next stages involve installing the submarine cable, selecting and contracting a telecommunications operator, and constructing landing stations in Chile.
The initiative could heighten tensions as Chile finds itself caught in the middle of an intensifying rivalry between China and the Trump administration. Undersea cables have long been flash points in geopolitical disputes.
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Follow AP's coverage of Latin America and the Caribbean at https://apnews.com/hub/latin-america
Nayara Batschke, The Associated Press
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'You're not just getting the effect of a tax on the U.S. economy,' York said. 'You're also getting the effect of foreign taxes on U.S. exports.'' She said the tariffs will basically wipe out all economic benefits from the One Big Beautiful Bill's tax cuts. Smetters at the Penn Wharton Budget Model said that tariffs also isolate the United States and discourage foreigners from investing in its economy. Foreigners see U.S. Treasurys as a super-safe investment and now own about 30% of the federal government's debt. If they cut back, the federal government would have to pay higher interest rates on Treasury debt to attract a smaller number of potential investors domestically. Higher borrowing costs and reduced investment would wallop the economy, making tariffs the most economically destructive tax available, Smetters said — more than twice as costly in reduced economic growth and wages as what he sees as the next-most damaging: the tax on corporate earnings. Tariffs also hit the poor hardest. They end up being a tax on consumers, and the poor spend more of their income than wealthier people do. Even without the tariffs, the One Big Beautiful Bill slams the poorest because it makes deep cuts to federal food programs and to Medicaid, which provides health care to low-income Americans. After the bill's tax and spending cuts, an analysis by the Penn Wharton Budget Model found, the poorest fifth of American households earning less than $17,000 a year would see their incomes drop by $820 next year. The richest 0.1% earning more than $4.3 million a year would come out ahead by $390,070 in 2026. 'If you layer a regressive tax increase like tariffs on top of that, you make a lot of low- and middle-income households substantially worse off,'' said the Tax Foundation's York. Overall, she said, tariffs are 'a very unreliable source of revenue for the legal reasons, the political reasons as well as the economic reasons. 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