MCDF and CAF to fund first submarine fiber-optic cable between Chile and Antarctica

The Multilateral Cooperation Center for Development Financing (MCDF) and CAF—development bank of Latin American and the Caribbean—agreed to develop two high-impact projects focusing on ICT and telecommunications infrastructure.

The first project aims to conduct pre-investment studies to build a network of high-performance AI computing centers in Latin America and the Caribbean, starting with Chile and the Dominican Republic, with the purpose of fostering research, development, and application of AI solutions. It will provide the region with advanced computing infrastructure for processing and analysis of large amounts of data and complex AI models. The purpose is to bridge the existing gap causing major inequalities in access, connectivity, and digital transformation in the region.

The project is expected to be replicated in other countries, including Costa Rica, Mexico, Colombia, Peru, Argentina, Uruguay, and Brazil, and that the hubs for the first stage are expected to be carbon neutral.

The second study aims to analyze the technical, economic, and legal feasibility of laying the first underwater fiber-optic cable between Chile and Antarctica, which should provide resilient, high-quality connectivity to facilitate the work of bases and research centers from multiple countries that collect huge amounts of data from various fields including climate science, glaciology, biology, and geology. The value of this data is dependent on effective internet connectivity, not only to transfer data to research institutions in Latin America and worldwide, but also to facilitate real-time collaboration among scientists, enable swift analysis of findings, and support emergency communication.

"These two initiatives are in line with our commitment to foster digital transformation and regional integration. First, the first submarine fiber-optic cable between Chile and Antarctica will set a new standard of connectivity, establishing high-speed digital connections to existing bases in Antarctica, from more than 30 countries, and establishing global cooperation in scientific and global climate issues. Meanwhile, the high-performance computing center network will redefine our strategies for addressing complex social challenges, delivering the computing capacity needed to address issues in security, mobility, healthcare, agriculture, climate change, and environmental preservation, among others," said CAF Finance VP Gabriel Felpeto.

"The MCDF welcomes the approval of the first two donations for CAF's ambitious transboundary connectivity agenda in Latin America and the Caribbean. The MCDF Coordination Committee backed two proposals for the preparation of iconic projects to underpin CAF-funded investments aimed at connecting international bases in Antarctica with Latin America and other regions, as well as the establishment of innovative High Capacity Computing Centers in Chile and the Dominican Republic. We hope to continue collaborating with CAF to move towards our shared goal of enhancing high-quality connectivity infrastructure in Latin America and the Caribbean, said MCDF's CEO Wang Zhongjing.