AI and Cloud Ignite APAC’s Subsea Boom

Asia-Pacific cables are scaling up for AI, cloud growth, and rising data demand, with flexible designs reshaping investment and strategy

18 Feb 2026

Beneath the Pacific, a quiet transformation is underway. The cables that carry the world’s data are being upgraded and expanded as artificial intelligence, cloud computing, and everyday digital traffic surge across Asia-Pacific.

What was once invisible infrastructure has become strategic ground. Governments, telecom operators, and tech giants now view subsea cables as critical assets in the race to power next-generation connectivity.

Major transpacific routes are being modernized to handle sustained growth in data demand. Systems such as Echo and Tabua, operated by Trans Pacific Networks, are boosting capacity between Asia and North America to support cloud services, AI workloads, streaming, and enterprise networks. Training large AI models is part of the story, but it sits alongside relentless cloud expansion and rising cross-border data flows.

Yet traffic growth alone does not explain the shift. The way cables are designed and financed is also changing, shaped by long-term cloud adoption and new investment patterns. Projects are increasingly structured around hyperscale capacity planning cycles rather than the slower forecasts that once guided telecom builds.

Technology is accelerating the change. Companies like Ciena are rolling out advanced transmission platforms that let operators increase bandwidth on existing systems without replacing entire cables. Capacity can be activated in stages as demand rises, which limits upfront capital exposure and allows faster scaling when workloads spike.

The balance of power is shifting as well. Hyperscale cloud providers are taking more direct roles in cable consortia, influencing design, funding, and long-term capacity rights. Their involvement gives them tighter control over performance and resilience, while pushing traditional carriers toward more flexible partnership models.

Regulation adds another layer of complexity. Across Asia-Pacific, governments are paying closer attention to digital infrastructure, national resilience, and data governance. Navigating a patchwork of policies has become part of the cost of doing business in global connectivity.

Even with those hurdles, momentum is building. Asia-Pacific sits at the heart of digital growth, linking fast-expanding regional markets with North American tech hubs. The cables being upgraded today are not just handling more data. They are shaping a more adaptable and resilient network for the AI era.