A new arms race is unfolding on the ocean floor
A new arms race is unfolding on the ocean floor. Countries and companies are investing in technologies for underwater use amid concerns about the vulnerability of critical infrastructure on the ocean floor.
What happened
In this articleHO-FRFCT-ITFollow your favorite stocksCREATE FREE ACCOUNTCompanies and governments are increasingly waking up to the fact that the future of warfare isn't just in the skies, but also on the ocean floor. Underwater view of a submarine cable and drum resting on the ocean floor, with glowing fiber optic lines flowing across the seabed conveying technology, connectivity and deep-sea infrastructure. Warning of space arms race as US confirms weapons in Earth's orbitWarning of space arms race as US confirms weapons in Earth's orbitCloseThe US has confirmed it deployed a space weapon in Earth's orbit, the first time it has acknowledged such offensive capabilities.
Russia and China responded by warning of an arms race in space. Defense and tech companies are now seeking a role in the emerging market for operating beneath the ocean surface. 5 million kilometers of subseaMap by TeleGeographyAlongside telecommunications cables and oil and gas pipelines, a growing network of subsea power cables also connects electricity markets and carries electricity from offshore wind farms to land. Major defense groups, including France's Thales, have established businesses spanning sonar, anti-submarine warfare, mine detection and autonomous underwater systems, as large and small firms alike seek a role in the emerging market for operating beneath the ocean surface. watch nowVIDEO17:5717:57Thales CEO: Global defence demand will stay high for at least a decadeSquawk Box EuropeUnderwater drones Germany-based defense-tech company Euroatlas is another company with its sights set on the potentially lucrative business of defending the seabed.
The wider picture
"It is virtually impossible to cover the entire ocean," Codrean told CNBC. Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuKey PointsCritical underwater infrastructure that underpins the global economy is becoming increasingly vulnerable, and governments are starting to assess how they can be protected. "It's the changing threat environment that's brought this to the fore," Katja Bego, senior research fellow at Chatham House, told CNBC. Nations and corporations alike are devoting attention as well as piles of cash to new technologies designed for underwater use, as concerns grow about the vulnerability of critical infrastructure like connectivity cables and energy pipelines traversing the seabed.
It comes amid growing concerns of so-called hybrid warfare, a broad term which can include cyberattacks, energy sabotage, disinformation, and economic pressure, with or without being accompanied by conventional military methods. At the same time, rapid advances in artificial intelligence, drones and autonomous technology are making new approaches to underwater surveillance possible, she said. From autonomous underwater vehicles to sensors attached to subsea cables, governments and military alliances are exploring ways to better monitor the infrastructure that underpins the global economy.
"Our whole economy is built on top of this," Bego said. 'The next logical domain'In September 2022, months after Russia launched its full-scale invasion of Ukraine, explosions ruptured the Nord Stream gas pipelines beneath the Baltic Sea.
What has been reported
Investigators determined the pipelines, built to deliver natural gas from Russia to Germany, had been deliberately sabotaged. The incident, alongside damage to subsea infrastructure in other parts of the world like the Arctic and near Taiwan, has focused governments' attention on vulnerabilities that received little attention in the decades following the Cold War, according to Bego. "This has been neglected for quite a long time, so it's quite a lot of catching up to be done," she said.
5 million kilometers of submarine communications cables are in service globally as of early 2026, according to TeleGeography, a telecommunications research firm that tracks global subsea cable networks. This submarine cable map shows an estimated 1. Meanwhile, the widespread deployment of aerial drones during the war between Ukraine and Russia has shown how autonomous systems operated from afar can change the nature of warfare. Bego described the maritime environment as "the next logical domain. "Defense companies are now positioning themselves for that shift.
What happens next
Alllex | E+ | Getty ImagesItalian shipbuilder Fincantieri announced in July plans to acquire majority stakes in four companies, for around 600 million euros ($689 million) to expand capabilities across underwater and surface drones, marine surveying and subsea communications. The company is building on more than a century of submarine expertise to move from what CEO Pierroberto Folgiero calls the "conventional underwater" world into an "unconventional" one encompassing smaller submarines, drones and underwater telecommunications. Speaking to CNBC in July, Folgiero described underwater telecommunications as "the real enabler of this new ecosystem.
"Folgiero sees future surface ships acting as "motherships," coordinating networks of vehicles operating above the seabed and throughout the water column. It has developed an autonomous underwater vehicle called GrayShark that can travel to an assigned area and carry out a mission without continuous human control, according to Verineia Codrean, the company's chief strategy and partnerships officer. It's designed to avoid obstacles and follow predetermined instructions when it encounters something unexpected. While inspecting a pipeline, for example, it could identify a mine-like object, report the discovery and wait for an operator to decide whether it should investigate further.
The report has been compiled by Press Orb using information reported across cnbc.com, bbc.co.uk. Details are presented according to the information available at the time of publication and may change as authorities, organisers or other relevant parties provide updates.