Microsoft · Google · Meta · Rest of World
Conflict in the Red Sea is forcing cloud giants to find a new route for the internet
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U.S. cloud giants are facing steep prices to secure backup internet routes around the Red Sea as fighting rages over the Red Sea strait that carries most data cables between Europe and Asia.
Key facts
- Microsoft said on September 23 that it plans to invest more than $400 million in subsea and land links across the Middle East by 2030
- More than 90% of data capacity between Europe and Asia runs through cables under the Red Sea
- Long-distance fiber is usually sold with a single upfront payment covering 15 years or more of use
- Three Red Sea cables were damaged in 2024, most likely by the anchor of a drifting cargo ship that a missile launched by the Iran-backed Houthis had disabled
Summary
More than 90% of data capacity between Europe and Asia runs through cables under the Red Sea. The Houthis, a U.S.-designated terrorist organization, seized Yemen’s side of the strait in September, including the island of Mayyun. In September, Google bought a pair of fiber strands running along Turkish state pipelines, paying two to three times the roughly 6 million euros ($7 million) that newer lines crossing Turkey are expected to cost, said a person familiar with the deal, requesting anonymity because the details are not public. Microsoft said on September 23 that it plans to invest more than $400 million in subsea and land links across the Middle East by 2030.