The EU Digital Decade Policy Programme

In the wake of the pandemic, which drove the necessity for digital adaptation across various sectors, the EU embarked on a robust commitment to lead digital transformation. Taking centre stage in this effort is the Digital Decade Policy Programme (DDPP), an extensive initiative unveiled by the EU to map out Europe’s digital future.

The primary objective of the DDPP is to expedite Europe’s digital evolution by nurturing advancements in critical digital domains and establishing targets to be met by 2030. These targets span across four fundamental pillars: bolstering digital infrastructures, enhancing digital skills, promoting digitalisation in business, and advancing digitalisation in public services.

As outlined by the Joint Research Centre (JRC), which tracks EU investments aligned with the Digital Decade objectives and their distribution across all Digital Decade targets, the primary EU-level funding mechanisms allocate over €165bn to drive the Digital Decade objectives forward. This represents an unparalleled investment in digitalisation aimed at accelerating our society’s digital transformation, with a notable 18.2% of this budget earmarked for infrastructure development. 

Over the past three years, significant strides have been made in implementing infrastructure projects, particularly in the extensive deployment of fibre-to-the-property (FTTP) and 5G networks across both urban and rural regions. These initiatives aim to ensure dependable network connectivity for individuals and businesses alike. Notably, between 2020 and 2022, the coverage of FTTP in EU-28 households surged from 25% to 40%, marking a substantial increase compared to the previous five-year average growth rate of 4%. Simultaneously, the proportion of EU-28 households with access to 5G saw an exponential rise, jumping from 15% to an impressive 78% within the same timeframe. 

Diving deep: Tech giants finance submarine cable ventures 

Simultaneously, the expansion of submarine cable infrastructure is experiencing exponential growth. Serving as the internet’s backbone, submarine cables facilitate a staggering 98% of international internet traffic, traversing approximately 521 active submarine cables spanning over 1.4 million kilometres globally – almost four times the distance from the Earth to the Moon. Consequently, any new submarine cable holds strategic importance for the future evolution of data centre facilities. The period between 2023 to 2025 is witnessing an unparalleled surge in new submarine cables, with a collective value reaching a remarkable $10bn.

These cables, extending over 300,000 kilometres across 78 systems, represent the most substantial growth phase in over twenty years. With the escalating demand for bandwidth among content providers, some entities have transitioned from being mere consumers of wholesale capacity to actively owning and investing in transport network infrastructure. This shift commenced with Google’s investment in the Unity cable consortium in 2010, followed by Meta, Microsoft, and more recently, Amazon, all of whom have either directly invested in or become major pre-sale purchasers of new submarine cable systems. Notably, Google has invested in 29 systems, while Meta has invested in 15. 

Shifting focus to the European landscape, over 200 submarine cables currently land in Europe, interconnecting the continent with the Middle East, Africa, APAC, and the Americas, spanning approximately 477,000 kilometres. Additionally, twenty more submarine cables, accounting for 10% of existing infrastructure, are due for completion by 2027, adding roughly 150,000 kilometres of cables. Italy, Greece, France, Portugal, Cyprus, Spain, Norway, Sweden, and the UK stand to directly benefit from these new connections. While Marseille retains its pivotal role as a cable landing site in the Mediterranean Sea, the introduction of new landings in Barcelona, Genoa, and Crete is bolstering network resilience and connectivity throughout the region. 

_{Read the articles within Spotlight: European Data Centres below.}