The European Union has announced a €260.8 million investment to expand the EllaLink submarine cable into Northern Brazil, a move designed to strengthen direct digital connectivity between Europe and Latin America while reducing reliance on U.S. internet infrastructure.
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The announcement was made during the 2nd EU-Brazil Investment Forum in Brasília as part of the Global Gateway initiative, Europe’s flagship program for developing critical infrastructure worldwide.
Northern Brazil could become a new AI and data center hub
The project will extend EllaLink’s infrastructure into the states of Pará and Maranhão, creating new digital corridors connected to French Guiana and the Caribbean.
The investment also includes Smart Nodes, advanced cybersecurity systems, environmental monitoring, and digital resilience technologies.
According to the European Union, the initiative is expected to attract investments in:
- Artificial Intelligence
- Cloud computing
- Data centers
- Financial services
- Scientific research
- Digital infrastructure
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Direct Europe-Brazil connection cuts latency by up to 50%
EllaLink has connected Fortaleza, Brazil, directly to Sines, Portugal, since 2021 through a 5,900-kilometer submarine fiber-optic cable.
Unlike traditional routes, which often pass through North America, EllaLink provides a direct Europe-Latin America connection.
The company says the route can reduce latency by up to 50%, improving performance for AI workloads, cloud services, financial transactions, and high-performance computing.
Digital sovereignty becomes a geopolitical priority
The expansion reflects Europe’s growing focus on digital sovereignty.
Currently, a significant share of internet traffic between Latin America and Europe still relies on infrastructure associated with the United States.
By creating alternative routes, the EU aims to increase network resilience, reduce congestion risks, and strengthen strategic digital independence.
More than internet infrastructure
Industry experts increasingly compare submarine cables to oil and gas pipelines because they carry over 95% of global internet traffic.
As artificial intelligence and cloud computing continue to expand, submarine cable infrastructure is becoming one of the world’s most valuable strategic assets.
With this investment, Brazil could emerge as one of Latin America’s leading digital connectivity hubs, positioning its Northern region as a key destination for future AI and data center investments.
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