If you think your internet is slow, imagine trying to lay billion-dollar cables through an active conflict zone. That's the problem facing Meta Platforms Inc. (META) and Alphabet Inc. (GOOGL) right now, as their massive undersea cable projects are hitting a hard stop in the Red Sea.

The issue is straightforward: rising security threats have made it impossible to build the infrastructure that keeps global internet connectivity flowing. And when you can't build cables through the most direct route, everyone pays the price.

Five Years Later, Still Waiting

Meta planned its 2Africa cable—a 45,000-kilometer system designed to loop around Africa and deliver high-speed connectivity—to be completed by 2025. Instead, the project remains unfinished five years later because the southern Red Sea segment hasn't been built, according to Bloomberg. The company cited operational challenges, regulatory hurdles, and geopolitical risks as ongoing obstacles.

Google's Blue-Raman cable faces similar delays, along with other major systems like India-Europe-Xpress, Sea-Me-We 6, and Africa-1. All of them are stuck waiting for conditions to improve in a region that's become increasingly dangerous for construction crews.

Why the Red Sea Matters

Here's the scale of the problem: about 400 seabed cables carry more than 95% of global internet traffic. The Red Sea has historically been the most direct and cost-effective path between Europe, Asia, and Africa, making it a critical chokepoint for digital infrastructure. But ongoing conflict has turned this vital corridor into a no-go zone.

Iran-backed Houthi militants have launched repeated missile attacks over the past two years, forcing ships to reroute and preventing specialized cable vessels from operating safely. When you can't send boats through, you can't lay cables. It's that simple, and that complicated.

Real Consequences

These delays aren't just inconvenient for tech giants—they're restricting broadband expansion in underserved countries, driving up consumer costs, and slowing internet speeds. Cable investors face financial strain too, forced to buy capacity from alternate routes while waiting to monetize their projects.

The stock market tells part of the story. Google stock has gained 54% year-to-date, backed by its core search and cloud businesses plus strategic AI investments. Meta is up just over 4%, weighed down by concerns over AI capital expenditures and continued heavy losses in its Reality Labs metaverse division.

Building Around the Problem

Both companies are working on alternatives. In August 2021, Google and Meta announced backing for the Apricot subsea cable to boost internet connectivity across Asia-Pacific, connecting Japan, Taiwan, Guam, the Philippines, Indonesia, and Singapore to support demand for broadband and 5G.

Google has committed $10 billion to accelerate India's digital growth. An April 2024 report showed the company investing $1 billion to build two new subsea cables—Proa and Taihei—strengthening digital connectivity between the U.S., Japan, and key Pacific islands. These projects support the Biden-Kishida push to deepen U.S.-Japan cooperation and ensure secure, resilient networks amid growing U.S.-China competition in the Pacific.

The company is working with partners including KDDI, Arteria Networks, Citadel Pacific, and CNMI to expand regional infrastructure. Google and Meta are reportedly funding additional transpacific cables connecting Singapore to the U.S., and Google has partnered with Chile to build the first subsea cable from South America to Asia Pacific.

Price Actions: GOOGL shares traded higher by 6.02% at $293.09 at last check Monday. META is up 0.22%.