FLAG Details AI-Era Subsea Network Strategy

Paul Lipscombe, Data Center Dynamics
September 1, 2026

FLAG has described how it is reshaping its connectivity business for demand linked to AI, cloud growth and digital infrastructure. The company, formerly Global Cloud Xchange, re-emerged in 2021 after a 2019 bankruptcy filing and was acquired by 3i Infrastructure in 2022. Chief executive Carl Grivner presented the revived FLAG brand as part of a rebuilt platform serving hyperscalers, telecom operators, OTT providers and enterprise customers.

The company says its platform includes seven subsea systems and six terrestrial networks, with subsea reach of about 66,000km across routes from North America toward Asia. It also operates or arranges landing-station capacity in Taiwan, Japan, France, the United Kingdom and the United States. More recently, it added trans-Pacific capacity to expand route choices between Southeast Asia and the United States. Together, those assets form the base for services spanning dark fibre, colocation and managed connectivity.

A central change is the planned balance between marine and land-based infrastructure. Grivner said the business is now about ninety percent subsea and 10 percent terrestrial, but FLAG wants to move toward a model closer to sixty-forty. The company is adding terrestrial routes in Iraq and Saudi Arabia, with the aim of improving redundancy for regional data centres and linking subsea assets more directly into inland networks, landing stations and data-centre locations.

The significance is tied to AI traffic patterns, which FLAG says are increasing pressure for more diverse, resilient routes rather than only long-haul subsea capacity. Grivner said the company has not seen connectivity affected by current Middle East conflict, while chief strategy and revenue officer Paul Abfalter said uncertainty has slowed some build activity. By the end of 2026, FLAG expects investment under 3i ownership to total $250 million, directed toward network upgrades and new capabilities. Beyond those commitments, management identified potential growth between Singapore, Australia and the United States, from India toward Europe, and within Asia. It is not currently prioritizing new Atlantic routes. FLAG is also exploring modular edge facilities in the Middle East, generally sized between five and twenty megawatts.

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