In short
The United States requires a submarine cable landing license for any cable connecting the country to another nation or passing beyond territorial waters. The Federal Communications Commission issues these licenses under authority the President delegated in 1954. E.O. 10530 In August 2025, the FCC completed the first major overhaul of its submarine cable rules since 2001. 90 FR 48648 The changes tighten foreign ownership reviews, bar deals with entities tied to six foreign adversary countries, and include submarine line terminal equipment (SLTE) within the regulatory definition of a submarine cable system, while proposing to extend licensing jurisdiction to SLTE owners and operators in a further rulemaking. 90 FR 48648, 90 FR 48557 AI data center operators can still access cable capacity through ownership stakes, long term IRU leases, colocation at landing stations, or direct SLTE connections. But submarine cable landing licensees would need to screen partners and investments for adversary ties and may face new licensing obligations if pending proposals are adopted. 90 FR 48648, 90 FR 48557, Tax alert
When do you need a submarine cable landing license
You need a license for any submarine cable that connects the continental United States to a foreign country. The same requirement applies to cables connecting Alaska, Hawaii, or a U.S. territory to a foreign country, the continental U.S., or each other. A license is also required for a submarine cable that connects the United States with a foreign country, or connects one portion of the United States with another, unless the cable lies wholly within the continental United States. 47 U.S.C. § 34
A cable that stays entirely within the continental United States and inside territorial waters does not need a license. For example, a cable running between two points in California that never goes outside 12 nautical miles is exempt. 47 U.S.C. § 34, FCC cable landing guide
This license is a presidential license required by the Cable Landing License Act of 1921. The President delegated the authority to issue licenses to the FCC in 1954. The State Department retains a review step for all applications. E.O. 10530, FCC submarine cable guide
Why submarine cable capacity is critical for AI data centers
Roughly 99% of global internet traffic travels through submarine cables. FCC press release The four largest hyperscaler cloud companies, Google, Meta, Microsoft, and Amazon, now use about 71% of international subsea capacity, up from 10% a decade ago. The Register They plan to spend over $370 billion on data center infrastructure in 2025 alone. Cargoson research The AI buildout is driving a new wave of submarine cable construction. Analysts expect more than $14 billion in new subsea cable investment to come online between 2025 and 2027. Om Malik For an AI data center developer, direct access to fast, high capacity international fiber has become a critical site selection factor.
What did the FCC’s 2025 overhaul change for submarine cable licensing
The FCC’s 2025 rulemaking updated nearly every major element of the submarine cable landing license process. These are the key changes for AI data center operators.
Who must now hold a license
Before 2025, the FCC generally required only the cable operator or consortium lead to be the license applicant. Now any entity that owns or controls at least a 5% interest in a submarine cable system and uses the U.S. points must be an applicant on the license. 90 FR 48648 An entity that controls a cable landing station must also apply. An entity that only owns a landing station but does not control it is not required to be an applicant. 90 FR 48648 Many hyperscaler consortium partners who previously relied on the lead operator’s license must now appear on the license themselves.
The FCC stopped short of requiring all owners of Submarine Line Terminal Equipment, SLTE, to become licensees in this order. But a Further Notice of Proposed Rulemaking, FNPRM, asks whether to extend the requirement to SLTE owners and operators, with a possible blanket license for most except those tied to foreign adversaries. FCC NPRM
Expanded definition to include inland data center SLTE
The FCC expanded the definition of a submarine cable system to include SLTE whether located in a cable landing station or further inland in AI data centers. 90 FR 48648 SLTE is the equipment that converts optical signals to electrical signals and connects to the terrestrial network. This resolved a long running debate over whether the FCC could regulate equipment placed deep inside a customer’s own data center. Under the new rule, the Commission now asserts jurisdiction over that equipment. An AI data center with direct SLTE is, for regulatory purposes, part of the submarine cable system, even if the AI data center is many miles from the beach landing.
Foreign adversary restrictions
The FCC adopted a presumption that entities owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary are not qualified to hold a cable landing license. 90 FR 48648 The list of foreign adversary countries includes China, Cuba, Iran, North Korea, Russia, and the Maduro regime in Venezuela. 15 CFR § 791.4(a)
A company falls under this presumption if a foreign adversary, or its agent, owns at least 10% of the voting or equity interest, or has a controlling interest through board seats, proxy voting, or contracts. 90 FR 48648 The applicant can try to rebut the presumption with clear and convincing evidence, but the bar is high.
Beyond ownership, the new rules prohibit a licensee from entering into an IRU or capacity lease that would let a foreign adversary entity install, own, or manage SLTE on a cable landing in the U.S., unless the FCC grants a waiver. 90 FR 48655 Licensees are expected to conduct substantial due diligence on their capacity buyers. The Commission did not adopt strict liability, but it expects licensees to conduct substantial due diligence. 90 FR 48655
Cybersecurity and physical security requirements
Every applicant for an initial cable landing license must certify that it has created and will implement and update a cybersecurity and physical security risk management plan, and every applicant for a modification, assignment, transfer of control, renewal, or extension must certify that it has created, updated, and implemented such a plan. 90 FR 48648 Following the NIST Cybersecurity Framework, or one of several other named frameworks, creates a presumption that the requirement is met. Tax alert Applicants must also certify the cable system will not use equipment or services on the FCC’s Covered List, which identifies communications equipment deemed a national security risk. 90 FR 48648
License term and future proposals
The standard license term remains 25 years. 90 FR 48648 The FCC’s NPRM seeks comment on shortening it to 10 or 15 years and adding a three year periodic review. Submarine Networks Those proposals are not yet final.
A summary of the pre- and post-2025 rules appears below.
| Rule element | Before 2025 | After 2025 Overhaul |
|---|---|---|
| License applicant threshold | Only the operator or lead consortium member typically | Any entity with at least 5% ownership using U.S. endpoints, plus CLS controllers |
| SLTE ownership | Not clearly subject to FCC oversight | SLTE is part of the cable system even if inland. FNPRM proposes licensing |
| Foreign adversary standard | Ad hoc national security review | Presumptive disqualification for entities with at least 10% adversary ownership |
| IRU restrictions | Not specifically addressed | Prohibition on adversary entities installing or managing SLTE |
| Cybersecurity plan | Not a codified requirement | Mandatory risk management plan. NIST framework presumption |
| Equipment restrictions | Limited | Must certify no Covered List equipment used |
What is the process and timeline for getting a cable landing license
The application process takes several months, depending on whether it qualifies for streamlined processing and whether foreign ownership triggers a Team Telecom review.
Streamlined processing
If the applicant demonstrates no 10% or greater foreign ownership and meets other conditions in the rules, the FCC can act on the application within 45 days after release of the public notice announcing the application as acceptable for filing and eligible for streamlined processing. 47 CFR 1.70016(a)(4), 47 CFR 1.70014(a)
Standard processing
For applications that do not qualify for streamlined review, the FCC targets action within 90 days of public notice, unless the application is extraordinarily complex. FCC guide
Team Telecom review
When an application has reportable foreign ownership, the FCC generally refers it to the executive branch for review by the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector (informally known as Team Telecom). 47 C.F.R. §§ 1.40001 to 1.40004 Team Telecom conducts an initial review within 120 days. If it needs additional time to complete its initial review, it can conduct a secondary assessment within 90 more days. 47 C.F.R. § 1.40004 After Team Telecom completes its recommendation, the State Department has a final 10 day review period. FCC guide An application with significant foreign adversary ties could face prolonged review or denial under the new disqualification rules.
| Milestone | Streamlined | Non-streamlined | With Team Telecom |
|---|---|---|---|
| FCC action target | 45 days | 90 days | Referred to Team Telecom |
| Team Telecom initial review | Not applicable | Not applicable | 120 days |
| Secondary assessment, if needed | Not applicable | Not applicable | 90 days |
| State Department review | Not applicable | Not applicable | 10 days |
| Total potential timeline | 45 days plus | 90 days plus | Up to 220 days plus |
What other federal permits does a submarine cable need
Beyond the FCC license, a submarine cable landing often requires permits from the U.S. Army Corps of Engineers and environmental consultations.
Army Corps of Engineers
The Corps regulates work in waters of the United States. Cable trenching or burial that involves dredging or filling requires a permit under Section 404 of the Clean Water Act. 33 U.S.C. § 1344 Any structure or work in navigable waters requires a permit under Section 10 of the Rivers and Harbors Act. [33 U.S.C. § 403] The Corps can authorize smaller cable projects under Nationwide Permits for utility lines. Larger projects may need an individual permit, which has a goal of 120 days, though projects requiring an environmental impact statement can take years. USACE Individual Permits, USACE The FCC license itself requires that the cable location inside U.S. territorial waters conform to plans approved by the Secretary of the Army. 47 C.F.R. § 1.767(g)(2)
Environmental reviews
Cable installation may require consultation with NOAA Fisheries under the Endangered Species Act if it could affect protected species. 16 U.S.C. § 1536(a)(2) A Marine Mammal Protection Act incidental take authorization may also be needed. [MMPA §§ 101(a)(5)(A), (D)] The continued presence of commercial submarine cables on or beneath the seabed of a national marine sanctuary is a category of activity subject to special use permit requirements. 16 U.S.C. § 1441, 15 CFR § 922.31, 71 FR 4898 These environmental steps can add time to the overall schedule.
How does state coastal zone review work for a cable landing
The Coastal Zone Management Act, CZMA, requires that federal license activities affecting a state’s coastal zone be consistent with the state’s coastal management program. An applicant must submit a consistency certification to the state. The state can concur, object, or remain silent. 16 U.S.C. § 1456(c)(3)(A)
For FCC submarine cable landing licenses, the practical impact is limited. As of a 2010 FCC ruling, no state had included FCC cable landing licenses as a listed activity in its coastal management plan. 75 FR 81488 That means the license application is an unlisted activity. For unlisted activities, the state can request NOAA approval to review the activity within 30 days of receiving constructive notice, such as through the Federal Register or NEPA documents. 15 C.F.R. § 930.54 If the state does not request review, the consistency certification is presumed concurred.
In the major build markets, here is how the CZMA applies.
Florida. The Florida Coastal Management Program does not list FCC cable landing licenses. An applicant would certify that no consistency certification is required. Americas I application, FCC.report Florida has 17 existing cable landing sites and seven more in development, so the practical precedent is well established.
Virginia. Virginia’s coastal program reviews offshore cable projects that require Corps permits, but the FCC license alone is not a listed activity. Virginia federal consistency list For a cable landing in Virginia Beach, the Corps permit process rather than the FCC license would trigger state consistency review.
Texas. Texas has a coastal management program administered by the General Land Office. FCC cable licenses are unlisted, matching the national pattern.
Georgia. Georgia has a federally approved coastal program, but currently no submarine cables land directly on Georgia’s coast. Cables land in South Carolina and Florida, with dark fiber backhaul to Georgia data centers.
Thus, for most AI data center projects, the state CZMA process adds little standalone risk to the FCC license itself. But the related Corps permits will often trigger a separate state consistency review that must be managed.
How can an AI data center operator get access to submarine cable capacity
Operators use four main methods, each with different legal and commercial consequences under the 2025 rules.
1. Ownership stake in the cable system
Hyperscalers increasingly take direct ownership positions in submarine cable consortia. Google holds stakes in about 33 cable systems. Meta owns or co owns about 15. The Register Owning a share gives the operator dedicated capacity and control over routing. Under the new FCC rules, any entity that owns or controls 5% or more of a submarine cable system and uses its U.S. points must be an applicant on the license. 90 FR 48648 The foreign adversary disqualification rules apply, so investors with ties to China, Russia, or other listed countries face heightened scrutiny and likely denial.
2. Long term capacity leases through IRUs
An Indefeasible Right of Use, IRU, is a long term lease, often 10 to 25 years, for a specified amount of capacity on a cable. The IRU holder does not own the cable but obtains rights similar to ownership for the capacity purchased. Many AI data center operators use IRUs to secure international bandwidth without the capital commitment of building a cable. The 2025 rules restrict these arrangements. A licensee cannot enter an IRU or capacity lease that would let an entity owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary install, own, or manage SLTE on a submarine cable landing in the United States. 90 FR 48655 Due diligence on the identity and ownership of the capacity buyer is now a compliance necessity.
3. Colocation in a cable landing station
An AI data center operator can build a facility immediately adjacent to a cable landing station, or lease space within the station, to minimize the fiber distance between the cable head and the servers. Several cable landing stations in Virginia Beach and Myrtle Beach are paired with adjacent AI data center campuses. This arrangement places the AI data center directly on the cable route without owning the cable or obtaining an IRU. Under the current rules, an AI data center that merely provides space, power, and security, and lacks operational control over the cable system, does not need its own FCC license. INCOMPAS reply comments The FCC has granted waivers to AI data center owners in this position, and the 2025 order did not disturb that practice.
4. Direct SLTE placement through Open Cable architecture
Modern submarine cables increasingly use the Open Cable model. The cable landing station houses only the power feed equipment and the open cable interface. The Submarine Line Terminal Equipment, the gear that converts the optical signal to electrical and connects to the terrestrial network, can be placed directly inside the AI data center, sometimes many miles inland. Ciena This allows an operator to bypass traditional backhaul and control the entire path from ocean to server rack. The FCC’s new definition explicitly includes inland SLTE within the submarine cable system, meaning the Commission claims regulatory authority over that equipment. 90 FR 48648 Today, the operator of that SLTE does not need its own license, but the FNPRM proposes requiring one, with a blanket license for most existing operators except those tied to foreign adversaries. 90 FR (proposed rule) If adopted, any AI data center with direct SLTE would need to track FCC compliance more formally.
What are the key submarine cable landing hubs for AI data centers
The major landing points for AI data center traffic concentrate in Virginia Beach, South Florida, Myrtle Beach, and the Texas Gulf Coast.
Virginia Beach
The Telxius cable landing station at Corporate Landing Parkway hosts three high capacity cables. MAREA provides 200 Tbps to Bilbao, Spain, backed by Microsoft, Meta, and Telxius. BRUSA provides 138 Tbps to Brazil and Puerto Rico. Google’s Dunant provides 250 Tbps to France. Google Cloud, Submarine Networks, Submarine Networks, Google Cloud An adjacent Globalinx Data Center campus provides carrier neutral interconnection and is expanding with a $34 million investment to accommodate up to four new subsea cable landings by 2028. Virginian-Pilot, City of Virginia Beach Backhaul routes connect these landings to major hyperscale AI data centers in the Richmond corridor, including QTS Richmond, which is the termination point for MAREA and BRUSA traffic.
South Florida
Boca Raton has four cable landing stations serving multiple cables. The Monet cable, with 64 Tbps from Brazil, co owned by Google, terminates at Equinix MI3, with extensions to Flexential’s Fort Lauderdale AI data center. DCD Equinix NAP of the Americas, MI-1, in downtown Miami interconnects 18 subsea cables, making it the primary hub for Latin American traffic. NBC Miami A new DC BLOX cable landing station under development in Palm Coast will support six subsea cables anchored by Google’s Sol transatlantic cable, with capacity of 10 MW and 100,000 square feet. DC BLOX, DC BLOX press release
Myrtle Beach and backhaul to Georgia
DC BLOX operates a cable landing station in Myrtle Beach that hosts Google’s Firmina, Meta’s Anjana, and Google’s Nuvem cables, plus the planned Confluence-1. DC BLOX, Submarine Networks The company built a dedicated dark fiber route from the landing station to Lithia Springs, Georgia, where Google operates a large AI data center campus, passing through Charleston, Augusta, and Atlanta. Submarine Networks This backhaul link effectively brings the submarine cable’s capacity into the Atlanta data center market without a Georgia beach landing.
Texas Gulf Coast
Houston and Galveston host submarine cable landings feeding the energy and AI sectors. Netrality’s 1301 Fannin carrier hotel in downtown Houston is a carrier-neutral interconnection hub for energy sector and Gulf Coast connectivity. Netrality Arelion built a Gulf Coast route connecting Houston to Jacksonville via Slidell, Mobile, and Tallahassee, designed to carry AI and machine learning traffic between East Coast cable stations and Texas data centers. Arelion press release Element Critical’s Houston One AI data center offers adjacent 400 MVA substation capacity for AI workloads. Element Critical
Key takeaways
- Any ownership stake of 5% or more in a submarine cable that uses U.S. endpoints now triggers an obligation to apply for the FCC license. Structure consortium agreements to identify who must be on the license.
- Screen every investment and capacity partner for ties to the six foreign adversary countries (China, Cuba, Iran, North Korea, Russia, and Venezuela). A 10% or greater adversary ownership stake presumptively blocks a license and bars IRU deals.
- When placing Submarine Line Terminal Equipment in an AI data center, expect that the FCC will treat it as part of the submarine cable system. Monitor the pending FNPRM that could require the data center operator to hold a license.
- Do not assume a waiver will be granted for IRUs with adversary linked entities. Prepare a thorough due diligence file demonstrating the absence of adversary control.
- Build time for the Team Telecom review into the project schedule if any foreign ownership exceeds 10%. The review can add 220 days or more.
- Coastal zone consistency review for the FCC license itself is usually a non event in Florida, Virginia, Texas, and other coastal states. But related Army Corps permits will trigger a full CZMA consistency review that needs its own compliance plan.
- Consider adjacency or colocation at a cable landing station as an alternative to full ownership or an IRU. A data center providing only space and power generally does not need its own license.
Frequently asked questions
Q:What is a submarine cable landing license?
A:It is a presidential license, delegated to the FCC, that authorizes the landing and operation of a submarine cable connecting the United States to a foreign country or passing beyond territorial waters.
Q:Do I need a license for a cable that stays inside U.S. waters?
A:No. A cable that runs wholly within the continental United States and does not go beyond 12 nautical miles from the coast is exempt.
Q:Who issues the cable landing license?
A:The FCC issues the license under authority delegated from the President. The State Department conducts a final review for applications with foreign ownership.
Q:What is Team Telecom?
A:Team Telecom is the Executive Branch committee that reviews foreign participation in U.S. telecommunications. It must review any cable landing application with reportable foreign ownership of 10% or greater.
Q:How long does it take to get a license?
A:Streamlined applications can be decided in 45 days. Standard applications take about 90 days. Applications referred to Team Telecom can take 220 days or more.
Q:Can a data center own a submarine cable?
A:Yes. Many hyperscale data center operators own stakes in cable systems. If they own 5% or more and use U.S. endpoints, they must apply for the FCC license.
Q:What is an IRU?
A:An Indefeasible Right of Use is a long term lease of capacity on a submarine cable. The new FCC rules restrict IRU deals where a foreign adversary entity would be able to install or manage SLTE.
Q:What is the Open Cable model?
A:It is an architecture where the cable landing station contains only power and interface equipment, and the terminal equipment, SLTE, is placed inside the data center. The FCC now considers that inland SLTE to be part of the submarine cable system.
Subscribe to The Compute Law Brief
The Compute Law Brief is a free weekday newsletter on the law of AI infrastructure across tax, real estate, construction, power, and deals. The big US build markets and federal law. Three minutes a morning. No paywall, and no email gate to read the blog. Subscribe if you want it in your inbox.
Junde Liu, JD, LL.M. (Taxation) candidate at UF Law. Originally published on Compute Law Blog. This article is general information and does not constitute legal advice. Reading it does not create an attorney client relationship. The reader should not act on the basis of any content here without first consulting a licensed attorney in the relevant state. Last reviewed for accuracy May 23, 2026.