Australia-US Direct Cable Redefines Pacific Data Power

Subco’s planned Australia-US cable aims for 2028 service, promising faster data flows and a stronger role for Australia in the AI-driven internet

19 Jan 2026

Australia is moving closer to the centre of global internet traffic with plans for a new subsea cable linking the country directly to the US, a route that could reshape how data flows across the Pacific and who controls it.

The proposed APX East cable, developed by Subco, aims to be ready for service in late 2028. Its main distinction is its direct path to the US mainland, avoiding the multiple Asian landing points used by most existing connections between Australia and North America.

That design reduces latency and operational risk. Each additional stop adds delay and creates points of vulnerability, an issue that has become more acute as companies shift growing volumes of data between cloud platforms, artificial intelligence systems and customers in different regions.

Demand for international bandwidth is rising quickly as data-intensive technologies move from niche uses into the core of economic activity. Subco founder Bevan Slattery has argued that digital connectivity is becoming strategically important in much the same way as transport or energy infrastructure.

Industry priorities are shifting alongside this demand. Large technology groups and data-heavy businesses are increasingly seeking to own or tightly control their network routes, rather than relying on shared capacity. Newer cable designs also allow capacity to be increased gradually, enabling operators to align investment more closely with actual usage rather than committing all capital upfront.

For Australia, a faster and more resilient link to North America could strengthen its appeal as a location for data centres, advanced computing projects and regional digital services. Companies serving global markets may benefit from improved performance, while consumers could see fewer disruptions when outages occur elsewhere in the region.

The costs are substantial. Subsea cables require large upfront investment, lengthy construction schedules and regulatory approvals across thousands of kilometres of ocean. Financial returns will depend on how quickly AI-driven services scale and how competitive the market for capacity becomes.

Still, the project highlights a broader shift. Undersea cables are no longer viewed as neutral infrastructure but as strategic assets, with their routes shaping the geography of digital power.