Australia’s ambition to become a global hub for artificial intelligence is no longer just about data centres and computing power—it now stretches to the ocean floor. A newly announced submarine cable project promises to reshape how Australia connects to the world and determine whether the nation can keep pace with the explosive growth of AI.
Australian-based submarine cable developer SUBCO has unveiled APX East, a 13,000-kilometre “hypercable” that will run directly from Sydney to San Diego. When completed, it will be the world’s longest continuous optical subsea cable, designed specifically to handle the immense data flows generated by modern, token-heavy AI systems.
Industry leaders warn that Australia’s existing international cables—many of which route through hubs such as Hawaii or Guam—were built for streaming video and conventional cloud traffic, not real-time AI inference. As hyperscalers plan to deploy up to 3 gigawatts of AI capacity in Australia by 2028, international bandwidth requirements are expected to skyrocket, exposing a critical bottleneck in the nation’s digital infrastructure.
APX East is positioned as a solution to this squeeze. Unlike legacy systems, the cable is designed for ultra-low latency and massive capacity, enabling AI models hosted in Australian data centres to serve global users efficiently. Its timing is deliberate: any cable delivered after 2029, SUBCO argues, would arrive too late to support the next wave of AI deployment.
A key feature of the project is sovereignty. APX East will be Australia’s first sovereign-owned international hypercable, reducing reliance on foreign-controlled infrastructure operated by global tech giants. In an era where data is increasingly viewed as a strategic national asset, this ownership model offers greater control over how Australia’s information is transmitted and protected.
Resilience is also central to the design. The cable will land north of Sydney’s traditional Southern Cable Protection Zone, addressing long-standing concerns about a geographic single point of failure. By diversifying landing locations and enabling single-end power feeding in emergencies, APX East aims to strengthen Australia’s digital security amid rising geopolitical and environmental risks.
The project carries an estimated cost of AU$747 million, with the main Sydney–California route expected to be ready for service by late 2028. Optional branches to Hawaii and Fiji may follow, but will not delay the primary route focused on AI traffic.
However, connectivity alone will not guarantee readiness. Studies, including recent research from the University of Queensland, show rapid uptake of AI tools by Australians, while energy analysts warn the national power grid may struggle to support the parallel boom in data centres. Without sufficient electricity, even the fastest cables cannot deliver on their promise.
APX East represents more than a faster internet link—it is a strategic bet on Australia’s place in the global AI economy. If paired with energy and infrastructure reform onshore, it could become a critical artery for exporting Australian-processed AI to the world. Without it, Australia risks building powerful AI factories with no efficient way to ship their digital output.
