Humboldt Cable’s Role in U.S.-China Tech Rivalry

Google collaborates with Chile to deploy the 14,800-kilometer Humboldt Cable, the first submarine data link connecting South America to the Asia-Pacific, aiming to establish Chile as a digital hub by 2027.

This ambitious project carries profound geopolitical significance amid the escalating U.S.-China tech rivalry, with Chile’s decision to partner with Google over Chinese firms like Huawei reflecting a strategic tilt toward Western interests.

As global competition for digital infrastructure intensifies in 2025, the Humboldt Cable highlights Chile’s critical role in managing the complex dynamics of technological and economic power.

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Navigating the U.S.-China Tech Divide

The Humboldt Cable, connecting Valparaíso, Chile, to Sydney, Australia, via French Polynesia, is a cornerstone of Chile’s vision to serve as a digital bridge between South America and the Asia-Pacific. By selecting Google as its partner, Chile aligns with a U.S.-based tech leader at a time when the U.S. is actively countering China’s influence in global infrastructure.

Recent U.S. policies, including tightened restrictions on Chinese telecom firms, underscore efforts to secure digital networks among allies through initiatives like “friendshoring.” Chile’s choice signals a deliberate move to integrate with Western-aligned digital ecosystems, enhancing its strategic position.

With a 144-terabyte capacity, the cable will enable South American data to bypass U.S.-based routing, reducing latency and increasing regional data autonomy. This shift could diminish China’s influence in Latin America, where its Belt and Road Initiative has funded extensive infrastructure, including digital networks.

However, this alignment risks complicating Chile’s economic relationship with China, its largest trading partner, which may respond with trade restrictions. The project’s $400 million budget, with Chile contributing $55 million, reflects its commitment to this geopolitical strategy, positioning it as a pivotal player in the global tech landscape.

Did you know?
Since 2020, the U.S. has committed over $6 billion to global submarine cable projects to counter China’s influence in digital infrastructure, according to a 2025 government report.

Opportunities and Diplomatic Challenges

The Humboldt Cable’s geopolitical impact extends beyond Chile, strengthening connectivity with U.S. allies like Australia and French Polynesia and supporting Washington’s efforts to counter China’s growing presence in the South Pacific. Economic projections estimate the cable will generate 12,000 jobs and contribute $15 billion to Chile’s GDP by 2030.

However, aligning with the U.S. carries risks, as China’s push for technological dominance could lead to economic pushback, particularly given Chile’s reliance on China for 38% of its exports in 2025.

Chile faces the challenge of balancing these tensions while capitalizing on the cable’s potential to attract tech investments. The project’s open-access model, allowing other firms to use the cable, fosters competition and could lower data costs across South America, benefiting countries like Argentina and Brazil.

As global trade fragments, with 92% of economists forecasting increased economic decoupling by 2028, Chile’s strategic alignment with Google could serve as a model for other nations navigating the U.S.-China tech rivalry.

Technical Insight

The Humboldt Cable employs wavelength-division multiplexing to achieve its 144-terabyte capacity, supporting high-speed data transfer across 14,800 km. Advanced encryption protocols enhance its geopolitical importance, making it crucial for U.S.-aligned cables to ensure cybersecurity in the face of rival nations' quantum computing advances.