Google and Facebook announced in 2017 the pacific Pacific Light Cable Network (PLCN) that connects Los Angeles and Hong Kong to the Trans-Pacific Submarine Cable Cable Network. The 13,000-kilometer-long cable has been built, but has been delayed by regulatory approval because of growing tensions between the United States and China.
The U.S. government’s justification for national security is that Google is considering alternative destinations. Singapore is a popular candidate.
Thomas Kurian, Google’s head of cloud computing, said in an interview that when we’re identifying the primary destination, we’re thinking about alternative destinations. Cloud computing companies have moved business centers from Hong Kong to Southeast and South Asia, where they see higher growth potential.
Google has set up a data center in Indonesia, and its next target is India, which it plans to open in New Delhi next year.
Hong Kong’s importance is already diminishing in the eyes of U.S. cloud computing service providers and Chinese competitors, such as Alibaba’s cloud service Alibaba Cloud, which is more focused on expanding from Southeast Asia to Hong Kong.