Hormuz crisis halts subsea cable work; EU cloud lobby targets Google
Regional tensions in the Strait of Hormuz have halted subsea cable-laying operations, threatening digital infrastructure expansion in the region and potentially impacting future international streaming connectivity. Separately, European cloud lobby CISPE is pressuring the EU to designate Google as a digital gatekeeper under the Digital Markets Act, arguing its omission gives Google unfair leverage over European cloud players. The article also notes Vodafone Portugal offering free calls to earthquake-hit Venezuela and Glaspoort's fiber expansion in the Netherlands.
Key Takeaways
- WIOCC COO Ryan Sher says all Red Sea cable laying is "on pause," describing the mood as one of hopelessness with no visible path forward on planned routes
- CISPE welcomes Amazon and Microsoft gatekeeper designations under the DMA but argues Google's omission gives it unfair leverage over European cloud players and over AWS and Azure themselves
- Gemini has grown to nearly 750 million monthly active users, making it the world's second-largest AI assistant, per CISPE's statement
- Gatekeeper designation under the DMA carries compliance obligations and potential fines up to 10% of total worldwide turnover for non-compliance
- Glaspoort fiber network reaching 281 business premises at Horsterparc business park in Zeewolde, Netherlands; KPN copper network to be switched off in those areas
Why It Matters
The halt in subsea cable operations delays new intercontinental bandwidth capacity that streaming platforms depend on for international content delivery. Sher's characterization of "no light at the end of the tunnel" for planned routes signals that Europe-MEA-Asia connectivity upgrades face prolonged postponement. Separately, if CISPE's push succeeds and Google joins Amazon and Microsoft as a designated gatekeeper, all three major hyperscaler clouds would operate under the same EU compliance regime—potentially reshaping infrastructure choices for streaming operators using GCP. Watch for any movement on cable-ship operations in the Gulf, or an EC response to CISPE's formal request on Google's omission.
Additional Context
Per the Los Angeles Times (March 2026), Meta halted the Persian Gulf segment of its 2Africa cable system after Alcatel Submarine Networks issued force majeure notices to customers, with its cable-laying ship stranded near Dammam, Saudi Arabia. The 2Africa Pearls segment and a Red Sea portion remained unfinished, though much of the cable had already been laid on the sea floor. Ars Technica reported in May 2026 that Iran had additionally threatened to charge US tech companies—including Meta, Google, Amazon, and Microsoft—license fees for subsea cables passing through the Strait of Hormuz, further complicating any resumption of cable operations.
AGBI (April 2026) quoted analysts indicating that at least five subsea cable projects in the Red Sea and Arabian Gulf were at risk, with timelines pushed back by "a couple of years" rather than months. BMI analyst Vakai Mutambirwa noted that delays remove expected gains in cost, latency, and route diversity, potentially slowing the scale-up of AI workloads across the Gulf region. A UK-based subsea cable provider, Flag, confirmed its projects to increase connectivity between Europe and Asia via the Gulf had been stymied.
On the regulatory front, the European Commission's gatekeeper portal shows Alphabet was designated under the DMA in September 2023 for services including Google Search, YouTube, Google Play, and Android—but Google Cloud was not among the listed core platform services. CISPE separately raised concerns in January 2026 about Google's pending acquisition of Wiz, arguing it could give Google unfair insights into third-party cloud customer data and strengthen its ability to lock in customers to GCP.
Read full article at lightreading.com
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