Nusa Dua, Bali – The burgeoning era of artificial intelligence (AI) is unleashing an unprecedented demand for data connectivity, pushing global telecommunications infrastructure to its limits. This surging requirement is now dramatically outpacing the industry’s capacity to build and deploy new infrastructure, creating a critical bottleneck for the digital future. A stark illustration of this challenge comes from the Bifrost submarine cable system, a vital artery connecting Singapore to the United States, whose extensive capacity was fully consumed in less than a year after its laborious five-year construction. Speaking at the Bali Annual Telkom International Conference (BATIC) 2026, Budi Satria Dharma Purba, Director of Wholesale & International Service at Telkom Indonesia, underscored the alarming disparity. "To build such a cable takes approximately five years. Yet, in less than one year, its entire capacity was fully utilized," Budi revealed during a press conference in Nusa Dua on Tuesday, August 25, 2026. This rapid exhaustion of a freshly built, multi-million dollar asset highlights a fundamental shift in demand dynamics, compelling industry leaders to rethink traditional infrastructure development paradigms. The AI Tsunami and Its Unprecedented Demands The explosion of artificial intelligence, particularly the rapid adoption of large language models (LLMs), generative AI, and advanced computational tasks, is the primary driver behind this escalating demand for connectivity. These sophisticated AI applications require immense processing power and, consequently, colossal amounts of data to be transferred and accessed in real-time across vast distances. From training massive AI models in geographically dispersed data centers to serving AI-powered applications to a global user base, every facet of AI’s lifecycle is bandwidth-intensive. Budi elaborated on this profound impact, stating, "For compute needs, connectivity requirements can be more than 10 times, even 10 to 20 times higher than before. This is the reality we are currently facing." This exponential growth isn’t merely incremental; it represents a qualitative leap in network strain. Traditional internet usage patterns, dominated by streaming, browsing, and social media, pale in comparison to the constant, high-volume, low-latency data flows demanded by AI. The implication is clear: the foundational infrastructure designed for yesterday’s internet is proving inadequate for tomorrow’s AI-driven world. This challenge is not unique to a single region or company; it is a global phenomenon. Every nation aiming to leverage AI for economic growth, innovation, and societal advancement must grapple with the underlying necessity of robust, high-capacity, and resilient connectivity. Without it, the promise of AI risks being throttled by the very networks intended to carry its innovation. A Race Against Time: The Bifrost Case Study The Bifrost cable system, a multi-party project designed to enhance connectivity across the Pacific, serves as a poignant real-world example of this accelerating crisis. Its trajectory from conception to full utilization offers a critical chronology of the current infrastructure dilemma. The Five-Year Gauntlet of Submarine Cable Construction Building an international submarine cable is an undertaking of monumental scale and complexity, a process that typically spans several years and involves significant capital investment and meticulous planning. The journey begins with extensive feasibility studies and marine surveys to identify optimal routes, avoiding seismic zones, existing cables, and other subsea hazards. This initial phase alone can take months, sometimes over a year, involving specialized vessels equipped with sonar and remotely operated vehicles (ROVs). Following route planning, securing permits and regulatory approvals from multiple national and international bodies is a bureaucratic maze that can add substantial delays. Simultaneously, the manufacturing of the fiber optic cables, repeaters, and terminal equipment is initiated. These are not off-the-shelf components but highly specialized, durable materials designed to withstand immense pressure and harsh ocean environments for decades. The production lead times for these components, especially the high-capacity optical fibers and subsea repeaters, can extend for years due to the limited number of specialized manufacturers globally. Finally, the deployment phase involves custom-built cable-laying ships, which carefully spool out thousands of kilometers of cable across the ocean floor. This precise operation requires expert crews, navigating complex underwater terrains and burying cables in shallow coastal waters to protect them from anchors and fishing trawlers. Once laid, the cable undergoes rigorous testing and commissioning before it can be declared operational. The entire process, from initial concept to service activation, often comfortably stretches to the five-year mark, as Budi Satria Dharma Purba noted for Bifrost. Capacity Consumed in a Blink The staggering reality for Bifrost, however, was that this meticulously planned and executed infrastructure, built over half a decade, found its entire capacity exhausted in under 12 months. This stark contrast between the protracted build time and the lightning-fast consumption rate highlights the core problem. The demand curve, primarily propelled by AI, is no longer linear but exponential, making long-term capacity planning incredibly challenging, if not obsolete, using traditional methodologies. The Bifrost case is not an isolated incident but a symptom of a broader global phenomenon. Data center operators, cloud service providers, and indeed, AI companies themselves are aggressively securing bandwidth to support their rapidly expanding operations. The race to acquire and deploy AI capabilities is creating a scramble for connectivity that far outstrips the pace at which new digital arteries can be laid. This imbalance threatens to create a digital chasm, where access to advanced AI is limited not by computational power or algorithmic sophistication, but by the physical constraints of the global network. Underlying Dynamics: Why Infrastructure Lags The current predicament is not merely a matter of slow construction; it is a complex interplay of technological, logistical, and geopolitical factors that collectively impede the rapid expansion of global connectivity. The Supply Chain Bottleneck The specialized nature of submarine cable infrastructure makes its supply chain inherently vulnerable. There are only a handful of global manufacturers capable of producing the high-quality fiber optic cables and subsea repeaters required. Similarly, the fleet of deep-sea cable-laying vessels is limited and highly specialized. This concentration of expertise and resources means that lead times for equipment and vessel availability are often long and subject to global demand fluctuations. When a sudden surge in demand, like the current AI-driven one, occurs, the entire supply chain strains to keep up. Delays in component manufacturing, fierce competition for vessel slots, and the scarcity of skilled marine engineers and technicians collectively contribute to the protracted timeline of new cable projects. Geopolitical Currents and Fragile Pathways Beyond technical and logistical hurdles, geopolitical considerations are increasingly influencing the design, routing, and deployment of submarine cables. These vital communication arteries often traverse politically sensitive regions, making them susceptible to disruptions. Budi specifically cited the impact of conflicts in the Middle East, such as those affecting the Strait of Hormuz and the Red Sea. These maritime choke points are critical pathways for numerous international cables connecting Europe, Asia, and other continents. Disruptions in such areas, whether due to intentional sabotage, accidental damage from shipping, or regional instability, can have cascading effects, impacting global internet traffic, financial markets, and even national security. The increasing awareness of these vulnerabilities compels operators to invest heavily in redundancy and diverse routing, meaning more cables must be laid, often along less direct but more secure paths, further increasing costs and complexity. Moreover, concerns about data sovereignty and potential espionage are leading some nations to favor domestically owned and operated cable systems, adding another layer of geopolitical complexity to an already intricate global network. Shifting Ownership Landscape The landscape of submarine cable ownership has undergone a dramatic transformation over the past decade. Historically, these massive infrastructure projects were primarily the domain of traditional telecommunications operators. However, as Budi pointed out, this has fundamentally changed. "Around 2012, the proportion of cables built by large technology companies like Google, Meta, Amazon, and Microsoft was only in the low teens. Today, that share has reached approximately 70%." These "hyperscalers" are driven by the need to support their vast global cloud services, social networks, and AI platforms. Owning their own infrastructure gives them greater control over latency, bandwidth, and cost, enabling them to optimize their services and reduce reliance on third-party wholesale providers. While this investment from tech giants has injected significant capital into cable deployment, it also presents new challenges. It shifts the power dynamic within the industry, and raises questions about equitable access and competition, especially for smaller operators or developing nations that may not have the resources to build their own systems or secure favorable terms from hyperscaler-owned cables. Indonesia’s Pivotal Role: Data Centers and Global Hubs Indonesia, with its vast population and rapidly digitizing economy, is emerging as a critical player in the global digital ecosystem, particularly in the realm of data centers. Budi noted that Jakarta and Batam are experiencing robust growth in data center development, driven by both domestic demand and their strategic geographical locations. These data centers, designed to house and process the immense data generated by AI and other digital services, are intrinsically linked to the availability of high-quality international connectivity. "If Indonesia wants to become a growth center for data centers supporting AI, global connectivity must also be readily available," Budi emphasized. The effectiveness of a data center hub is not just about power, cooling, or physical security; it is fundamentally about its ability to seamlessly connect to the rest of the world at high speeds and low latencies. Without sufficient submarine cable capacity linking Jakarta and Batam to major internet exchanges in Singapore, the US, and Europe, Indonesia’s ambition to become an AI data center powerhouse could be severely hampered. Recognizing this critical nexus, Telin, TelkomGroup’s international business arm, is actively investing in bolstering its submarine cable infrastructure. This strategic focus has yielded impressive results, with Telin’s international connectivity business reporting annual revenue growth exceeding 20%. This robust growth underscores both the urgency of the demand and the significant market opportunity for those willing and able to invest in expanding the global digital backbone. Charting a Collaborative Course: Industry Responses The scale of the challenge—the unprecedented demand from AI colliding with the inherent limitations of infrastructure development—necessitates a fundamental shift in how the industry operates. Telkom’s Strategic Vision and Telin’s Role Telkom Indonesia, through Telin, is committed to being a key enabler of global connectivity. Their investment strategy is not just about building new cables but also about upgrading existing ones with newer, higher-capacity optical technologies and actively seeking strategic partnerships. Telin’s extensive network of international cables, connecting Indonesia to various global hubs, positions it as a vital link in the Asia-Pacific region. Their continuous monitoring of traffic patterns, proactive capacity planning, and engagement in international consortia for new cable projects are critical steps in addressing the demand-supply gap. Furthermore, Telin aims to optimize the utilization of its existing assets while simultaneously exploring innovative financing models for future mega-projects. The Imperative of Collaboration The complexity and sheer cost of building modern submarine cables mean that individual players, even large ones, often cannot bear the burden alone. This has long made consortia a common model for cable projects. However, the current AI-driven surge in demand elevates collaboration from a mere best practice to an essential operating model. Abdul Rahman Ansyori, CEO of Telin, articulated this paradigm shift with conviction: "Collaboration is no longer just a best practice in the industry. Collaboration has become an operating model. And this applies not only now but also for the future." This implies a deeper, more integrated form of partnership, extending beyond financial contributions to shared technical expertise, coordinated planning, and even joint operational management. Such collaboration must encompass a broad spectrum of stakeholders: traditional telecom operators, hyperscalers, content providers, data center operators, and even governments. It’s about leveraging collective strengths to overcome the immense challenges of finance, engineering, regulatory hurdles, and geopolitical complexities. By pooling resources and expertise, the industry can accelerate deployment, enhance resilience, and ensure more equitable access to critical infrastructure. Government and Regulatory Support Governments also have a crucial role to play in facilitating this infrastructure build-out. Streamlining permitting processes, offering incentives for investment, ensuring stable regulatory environments, and fostering international cooperation can significantly accelerate cable deployment. Policies that encourage open access, promote competition, and safeguard infrastructure security are vital for creating a robust and resilient global network. Furthermore, government-backed initiatives can help bridge digital divides, ensuring that all regions, not just major economic hubs, benefit from enhanced connectivity. The Road Ahead: Implications and Future Outlook The current connectivity crisis, exacerbated by AI, carries profound implications for the global digital economy and society at large. Economic Imperatives Failure to keep pace with connectivity demand could stifle innovation, slow economic growth, and widen the digital divide. Nations and businesses that lack sufficient bandwidth will struggle to participate fully in the AI-driven economy, potentially losing their competitive edge. Conversely, those that successfully address this challenge stand to gain significant economic advantages, attracting investment, fostering technological development, and creating new opportunities. The economic future of many countries hinges directly on their ability to build and sustain high-capacity, resilient digital infrastructure. Technological Evolution The pressure to deliver more bandwidth faster is also driving innovation in optical technologies. Researchers are exploring new types of fiber optic cables with higher core counts, advanced modulation techniques to squeeze more data through existing fibers, and even quantum networking concepts that promise unprecedented security and capacity. The development of next-generation repeaters and terminal equipment that can handle ever-increasing data rates will be crucial. Furthermore, alternative connectivity solutions, such as advanced satellite constellations (e.g., Starlink, OneWeb) and high-altitude platform stations (HAPS), may play a supplementary role in providing connectivity to remote areas or offering additional redundancy, though they are unlikely to fully replace the core capacity of submarine cables for terrestrial high-volume traffic. Ensuring Resilience and Redundancy With an increasingly interconnected world, the resilience of the global network becomes paramount. The geopolitical risks highlighted by the Middle East conflicts underscore the critical need for diverse routing and robust redundancy. Relying on a single cable or a limited number of pathways creates single points of failure that can have catastrophic consequences. Future infrastructure planning must prioritize multiple, geographically diverse routes, allowing traffic to be rerouted seamlessly in the event of a cable cut or disruption. This not only enhances reliability but also contributes to national and economic security. A Continuous Cycle of Investment Ultimately, the challenge of meeting AI’s insatiable demand for connectivity is not a one-time fix but a continuous cycle of investment, innovation, and adaptation. As AI capabilities evolve and permeate more aspects of daily life and industry, the demand for bandwidth will only continue to grow. The industry must therefore adopt a forward-looking, agile approach, constantly forecasting future needs, investing proactively, and fostering a culture of collaboration to ensure that the digital backbone remains robust enough to support the ambitions of the AI age. The message from BATIC 2026 is unambiguous: the digital future, powered by AI, is here, and it demands an unprecedented scale of global connectivity. The race is on, not just to build, but to innovate faster, collaborate deeper, and plan more strategically to lay the groundwork for a truly interconnected world. Post navigation Gaming’s Immortals: The Legendary Titles Still Dominating in 2026
