Abstract:
Norwegian infrastructure company Bulk Infrastructure recently proposed a new transatlantic communications project, planning to build an undersea fiber-optic cable connecting Canada and Europe, while avoiding US territory and related routing systems. The project, named "Leif Erikson," is still in the planning and financing stages and has not yet entered the construction phase.
According to the plan, the total length of the entire system will exceed 6,500 kilometers, connecting Norway and Montreal, Canada. About 4,600 kilometers of them are submarine optical cables, which are laid across the North Atlantic from southern Norway to Hapi Valley-Goose Bay in Newfoundland and Labrador, Canada. Then they pass through Quebec and finally reach Montreal through about 1,900 kilometers of land optical fiber lines.
Bulk Infrastructure stated that the project aims to establish an international data channel with "sovereign attributes" for Canada, so that data transmission between Canada and Europe does not need to pass through the US network infrastructure. Currently, Canada has a relatively limited number of international undersea communication lines that can directly connect overseas without relying on U.S. routing, which has also become one of the important driving factors for the project.
The project feasibility study will be launched as early as 2021. At that time, Bulk commissioned consulting agency WFN Strategies to carry out technical planning, submarine line survey, risk assessment, economic model analysis and construction plan research. As planning progressed, the project route and technical parameters also underwent many adjustments.
However, the project still faces many challenges before construction actually starts. Bulk expects the total investment to exceed US$620 million. The current financing plan has not yet been fully determined, and the main customer sources have not yet been confirmed. In addition, the undersea line survey work is not yet complete, and the land portion still needs to obtain environmental approvals, land use permits, and consultations with indigenous communities along the line.
Bulk is currently looking for a Canadian company to serve as a holding partner for the project to meet its positioning needs for the "Canadian Sovereign Communications System." Although Bulk itself has a deep Canadian capital background, including BGO, a subsidiary of Canada's Sun Life Financial, holding approximately 65% of the shares, and Canadian pension funds participating in investments, this does not meet the goals of the future ownership structure of the project.
The timing of the project is also related to Canada’s emphasis on the resilience of critical infrastructure in recent years. As demand for data centers, artificial intelligence and cloud computing continues to grow, the Canadian government is increasingly focusing on the security of communications infrastructure and the autonomy of international data channels. Bulk believes that a direct data line to Europe will help increase Canada’s independence and reliability in the field of digital infrastructure.
It is worth noting that even if the line is eventually completed, bypassing US territory does not mean that data transmission can be completely separated from the US network system. Industry insiders pointed out that after data enters other network nodes in Europe or North America, it may still be connected to U.S. operators and Internet backbone networks. Therefore, the so-called "bypassing the United States" is more reflected in the physical line level rather than completely achieving network ecological independence.
Currently, Europe and Canada are planning to further strengthen cooperation on digital infrastructure. According to reports, the two parties are expected to discuss future new submarine communication connection solutions between Europe, Canada and Asia at a relevant meeting in Montreal at the end of this month. Whether the Leif Erikson project can obtain the required financing, approvals and market support remains to be seen.
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