Google signed an agreement with Chile to deploy an undersea fiber optic cable connecting South America with Asia and Oceania, a first-of-its-kind project that aims to cement the South American country's status as a major digital hub.

The Humboldt Cable, set to be launched in 2027, is a 14,800-kilometer (9,200-mile) underwater data cable that will link Valparaiso, a coastal city in Chile, with Sydney, Australia, passing through French Polynesia.

The project is being introduced nearly ten years after its initial proposal in 2016, and six years following the preliminary studies to assess its feasibility.

According to Chile’s Transport Minister Juan Carlos Muoz, “This is the first submarine cable in the South Pacific, making it a significant commitment.”

Chile, which hosts one of Google’s largest data centers in Latin America, is presently connected to the United States and other regions through an undersea cable. This existing cable also provides Chile with a longer connection to other continents.

While Google has not revealed its total investment, Patricio Rey, the general manager of local partner Desarrollo Pas—an infrastructure company owned by the state—estimated that the cable project’s cost ranges from $300 million to $550 million, with Chile contributing $25 million. The Humboldt Cable will position Chile as a data hub for the Asia-Pacific region and enhance its relations with Asian countries, particularly China, which is its largest trading partner.

This development comes amidst a growing demand for undersea cables driven by the increasing reliance on cloud computing services. Upcoming steps include the installation of the submarine cable, the selection and contracting of a telecommunications operator, and the construction of landing stations in Chile.

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This initiative may escalate tensions as Chile finds itself in the midst of an escalating rivalry between China and the Trump administration. Undersea cables have historically been points of contention in geopolitical conflicts.