Meta Platforms Inc (NASDAQ:META) plans to build a massive fiber-optic subsea cable and become its sole owner.
What Happened: The cable would reportedly span 40,000-kilometers and give Meta a dedicated pipe for data traffic worldwide.
The cable's planned route will span from the east coast of the U.S. to India via South Africa and then to the west coast of the U.S. from India via Australia.
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Sunil Tagare, a subsea cable expert, told TechCrunch that Meta would proceed with the plan with a budget of $2 billion and gradually cross $10 billion after years of work.
The company's properties and users account for 10% of all fixed and 22% of all mobile traffic. Meta's artificial intelligence investments will likely pose additional positive drivers.
Santosh Janardhan, the company's head of global infrastructure and co-head of engineering, oversees Meta's infrastructure work.
Why It Matters: Meta is the second-biggest driver of internet usage globally, thanks to Facebook, Instagram, and WhatsApp.
The cable could help the company accomplish its ambitions of becoming the sole owner of the infrastructure to support its business, rubbing shoulders with Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google which is involved in 33 different routes.
The investment would span across five to ten years, the Verge reports.
Meta is part-owner of 16 existing networks, TechCrunch cites telecom analysts Telegeography.
Meta Platforms stock surged 66% year-to-date.
BofA Securities's Justin Post hailed Meta as the top AI pick, backed by generative AI and infrastructure developments. He flagged the prompt and rising adoption of Llama and Meta AI.
Investors can gain exposure to Meta through iShares Global Comm Services ETF (NYSE:IXP) and Vanguard Communication Services ETF (NYSE:VOX).
Price Action: Meta stock is up 1.17% at $575.88 at last check Friday.
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