Conflict in the Red Sea forcing cloud giants to find new routes for the internet
3 hours ago
- Over 90% of data capacity between Europe and Asia runs through Red Sea cables passing through the narrow Bab al-Mandab strait, making them vulnerable to geopolitical conflict.
- Cloud giants like Google, Microsoft, and Meta are investing heavily in land backup routes (e.g., Google buying fiber along Turkish pipelines, Microsoft pledging $400M) to circumvent the Red Sea, at costs two to three times higher than submarine cables.
- Repairs to damaged Red Sea cables can take months due to permit delays and safety concerns from ongoing Houthi attacks, as seen in 2024 when three cables were cut.
- Cloud companies are testing land routes as active backups but prefer submarine cables for lower cost; they are increasingly pricing in the risk of a permanent shift like an 'Afghanistan scenario'.