Global Subsea Resurgence

Transcription

1 Global Subsea Resurgence LINX Member Meeting Manchester Aug 20 th 2018 VINAY NAGPAL President, InterGlobix LLC Customer Advisory Board, LINX NoVA Leadership Board & Executive Circle, NVTC

2 The World of Subsea Cables As of early 2018, 448 submarine cables in service globally 1.2M kms of cables 99% of international data is transmitted under water Typically carrier consortiums owned subsea projects OTTs/Content providers investing in subsea Source: Telegeography Cable Landing Map

3 Vital to the Internet Economy Growth of data generation, data consumption, data centers, terrestrial fiber and subsea fiber are all interrelated Subsea bandwidth is growing at 40% CAGR globally Subsea cables are responsible for $10 Trillion in transactions every day PARTS OF A SUBMARINE CABLE Higher bandwidth needs and new optical technology is pushing 100G+ and single fiber can transmit hundreds of signals using DWDM technology

4 The Resurgence A Paradigm Shift Rapid shift from multiple carrier-led consortia to single-entity owned/operated systems Several Subsea systems area nearing EOL (25 yrs.) Subsea landing diversity important to avoid existing landings and to avoid congested terrestrial networks System within a system two or more independently operated systems are incorporated within the same cable sheath OTTs/Cloud providers: Google, Microsoft, Facebook, Amazon are investing in subsea cables

5 Cloud Providers Investing in Subsea Incredible demand for high bandwidth capacity Enterprise adoption of Cloud services is driving demand Cloud providers are investing heavily in subsea cables for increased control Paradigm shift from consortium-owned cables to Cloud provider owned Private Networks Share of Used Bandwidth by Route Source: Telegeography

6 Global Subsea Resurgence New Products, Services & Business Models

7 New Subsea Operators Caribbean Islands to Americas 40 planned landings connecting 28 islands together Toronto to Buffalo via Lake Ontario Long Island to Wall, NJ via Atlantic Ocean Toronto to Montreal (JV with Metro Optic, Utilities Kingston) Seabras-1: Wall, NJ to Praia Grande, Brazil (Sao Paolo) ARBR: Las Toninas, Argentina (Buenos Aires) to Sao Paulo, Brazil SABR: Cape Town, South Africa to Recife, Brazil AEConnect-1 Long Island, NY to Killala, Ireland CeltixConnect-1 from Dublin, Ireland to Holyhead, UK AE Connect-2: Aqua Comms s capacity on a consortium cable connecting NJ to Ireland, and Denmark with connectivity options to Norway CeltixConnect-2,North Sea Connect, North Wales Connect SAEx1: Cape Town, South Africa to Virginia Beach, USA SAEx2: Cape Town, South Africa to Chennai, India East London, South Africa to Punducherry, India

8 New Product & Commercial Models PRODUCT Dark Fiber Pair Lit Capacity: 10G, 100G, 200G Wavelengths (protected or unprotected) ¼ Dark Fiber Pair, ½ Dark Fiber Pair Spectrum FLEX Ethernet 10GigE, 100GigE with IP addressing SERVICE DELIVERY SDN-enablement On-demand services Fast provisioning CONTRACTING Entitlement IRU 5 to 20 years Lease 12, 24, 26 months NICHE PRODUCTS ULL solution for highfrequency traders and gaming customers (SeaSpeed by Seaborne) Pay-As-You- Grow (SeaCloud by Seaborne) Managed Spectrum by Aqua Comms

9 The Continental Edge Direct access to Diverse Submarine Cable Systems Physical Route Protection in the Atlantic Ocean Latency Enhancements Direct access to DE-CIX NY/ NJ Distributed Mesh Peering Network $0 Cross Connect Fee in both locations 1025Connect & NJFX

10 NJFX Subsea Colocation New carrier-neutral colocation / data centers focused on driving Subsea Ecosystem New Jersey NJFX Tier-3 by Subsea Tier-3 Colocation & CLS 10-acre campus built in Wall NJ to facilitate subsea to terrestrial fiber handoff Latency Sensitive Route to Tokyo TOKYO JAPAN TORONTO CAN 755/800 Secaucus GATEWAY TO NYC FINANCIALS NJFX SUBSEA EXCHANGE 111 8th 165 Halsey 300 JFK 3 Corp Pl Multiple Carriers Latency Sensitive Diversity to NYC / Financials 1400 Federal Cross Lake SEABRAS 1700 MacArthur Lightower MBC / Uniti (proposed 2018) CrossLake (proposed 2018) Fortaleza AEC-2 (2019) 1025 Connect Virginia Beach CLS Praia Grande CLS MAREA Shirley CLS AEC-1 Bilbao Spain CLS Sao Paolo KILLALA IRELAND CLS CO. MAYO IRELAND CLS AEC-2 (2019) MAREA IRELAND POPS CC1 CC2 AEC-2 (2019) New Latency Sensitive Route Paris Latency Sensitive Route to Eurasia Interxion Marsielle CLS CAMPUS Amsterdam Milan UK POPS DENMARK CLS GERMANY POPS Egypt CLS Mumbai CLS Latency Sensitive Route to South America Frankfurt Straussberg

11 A Role Model Marseille, France Marseille has become fastest growing Interconnection hub in last 3 years Digital Connectivity Gateway between Europe and Africa, Middle East and Asia Carrier-Neutral Subsea Colocation at the seaport of Marseille enabled Marseille to get: Corporate Landing Camp Pendleton Beach MH III ü 13 Subsea Cables ü 130+ Network Carriers ü 4 IXPs ü 24x7 Support Sandbridge Beach MH

12 Global Subsea Resurgence Some Recent Subsea Projects

13 Aqua Comms The North Atlantic Loop AMERICA EUROPE CONNECT AEConnect-1: Shirley, NY to Killala, Ireland AEConnect-2: Wall, NJ to Blaabjerg, Denmark; BUs in Lecanvey, Ireland and Kristiansand, Norway AEC-1 & AEC-2 together form the North Atlantic Loop

14 Celtix Connect & North Sea Connect Unique diverse, high capacity routes to UK and Europe Ring protection between mainland Europe, UK and Ireland and onwards to the US CeltixConnect-1: Dublin, Ireland to Holyhead, UK CeltixConnect-2: Dublin, Ireland to Blackpool, UK North Sea Connect: Newcastle, UK to Esbjerg, Denmark North Wales Connect: Anglesey, UK to Deeside, UK

15 Aqua Comms Managed Spectrum Multiple contiguous channels can be provisioned to provide a portion of the overall spectrum Flexible and Scalable Bandwidth Flexible IRU options 5 to 20 years Scalable Cost Structure NRC IRU for initial spectrum (n x 100 Gbps), additional contiguous spectrum, or additional IRU options

16 Seaborn Networks Seabras-1: Wall Township, NJ to Praia Grande, Brazil (metro Sao Paolo) ARBR: Praia Grande, Brazil to Las Toninas, Argentina (Buenos Aires) SABR: Recife, Brazil to Cape Town, South Africa

17 South Atlantic Express Cable (SAEx)

18 Global Subsea Resurgence Northern Virginia & Virginia Beach

19 Northern Virginia DATA CENTER ALLEY ü #1 Data center market in the US ü 70%+ world s Internet County ü State tax incentives ü Dominion Virginia favorable power rates ü Abundant land, power and fiber ü Home of the Cloud

20 LINX NoVA in Virginia LINX NoVA US launch: Jan 2014 Data center agnostic: o Coresite (Reston) o DuPont Fabros/Digital Realty (Ashburn) o EvoSwitch/Iron Mountain (Manassas) Distributed Exchange Fabric 54 Members 500 Gbps

21 Northern Virginia Data Center Providers Over 75 operating data centers 10M operating sq. ft. 4.5M sq. ft. under development Over 1000 MW (1 GW) of operating critical IT load

22 Current State of Connectivity in Virginia Over 70% of world s Internet traffic flows through Northern Virginia In order that traffic to leave eastern seaboard of US, it has to travel either to NY/NJ or to the state of Florida Currently there are 13 Subsea cables in NY/NJ and 22 in Florida In 2017, Virginia got it s FIRST subsea cables (MAREA: co-owned by Microsoft, FB, Telxius)

23 Connecting US to the World US interconnection hubs: 1. NoVA: Filigree Ct. 2. Atlanta: 55 Marietta 3. NYC: th Avenue 4. Seattle: Westin Building 5. Dallas: 1950 N Stemmons 6. LA: 1 Wilshire 7. Miami: 50 NE 9 th Street 8. Chicago: 350 E Cermak 9. San Fran: 200 Paul 10. Bay Area: 11 Great Oaks 10 Major Interconnection hubs in the US Subsea cable landings on West Coast and East Coast Source: Telegeography Cable Landing Map

24 NY, NJ & FL Cable Landing Stations

25 Virginia Beach 0 to 4 in ~18 months MAREA, BRUSA, SAex, DUNANT Diverse from NY/NJ and Florida subsea cables Proximity to Northern Virginia data centers Faster, low-latency, direct connectivity for NoVA Confluence of North America, Caribbean, South America and Africa Avoidance of congestion points in North America and Europe

26 Corporate Landing Business Park Owned by the City of VB Development Authority Easy access to I-264 Infrastructure (streets, water, sewer) Cable Landing Station Area: 163 acres Power: 34.5KV served by two substations with 0.5 mile of park (Dominion Energy) Data Center Ready Site Fiber Providers: Cox, MBC, Verizon, MFN, Level 3 Technology Zone Creation: program to include variety of incentives Rebate of business license tax Reimbursement of business license fee Reimbursement of water & sewage connection fees

27 Economic Development Benefits Economic Development impact $9M towards economy, 61 jobs already created Faster connection across the Atlantic MAREA will be fastest cable to connect US to Europe 160 Tbps across Atlantic Low latency to Europe and to South America Better connectivity options for Northern Virginia Several dark fiber providers are planning diverse dark fiber routes from VA Beach to Northern Virginia Data Center & Cloud growth catalyst Report identified over 14 High Tech Service Industry Clusters that would benefit from subsea cables

28 Proposed Cable Protection Zones ü The City of Virginia Beach has begun the process of establishing offshore cable protection zones for all transatlantic telecommunications cable landing locations. ü When established this will be the first cable protection zone in North America.

29 Diversified Subsea Cable Landings Camp Pendelton MAREA & BRUSA Camp Pendelton MAREA & BRUSA 26,387 feet Landings for SAex & Dunant TBD City of Virginia Beach is proactively planning proactive conduit and beach MH infrastructure at diverse location Sandbridge Telxius CLS MAREA & BRUSA CORPORTE LANDING Friendly business environment for subsea cable permitting and licensing Sandbridge 31,602 feet

30 Subsea Colocation Ecosystem

31 Global Subsea Resurgence Wrap-Up/Summary

32 Subsea Cable Investment 2018 to 2020: $8.7B in Subsea Cable Investment Key Drivers 1. Ownership Economics 2. Route Diversity 3. Provider Diversity 4. Costs Pricing of adding capacity to a cable continues to fall: In 2018 cost of adding 1 Tbps to a subsea cable is half of what it was few years ago Lit vs Potential capacity: Lit: amount of capacity a cable can handle presently Potential: amount of capacity a cable can handle when fully equipped

33 Summary Subsea Cable Resurgence is going to continue for at least next 3-5 years Subsea Colocation driving carrier-neutral colocation sites as CLS and subsea-terrestrial fiber handoff facilities Diverse landing points and new business models Data Center industry will proactively work hand-in-hand with the subsea industry

34 Subsea Cable Trivia 4-16 strands fibers in a cable 160 channels one fiber pair (two-way highway) can be subdivided into 1000 times strength of fiber compared to hair (same thickness) 25 years cable lifespan $300-$400MM project cost 2 secs transfer Library of Congress across the Atlantic Ocean 1858 first subsea cable laid

35 Thank you! e: w: