Bridging AI and global connectivity: The rise of hybrid cable landing stations and the shift beyond hyperscalers

Contributed Article by Tim Parker, Chief Growth Officer of Assured Comms The rapid evolution of AI is reshaping data center infrastructure, changing the approach to compute deployment by enterprises and cloud providers. Driven by traditional hyperscalers with large-scale training clusters, emerging efficiency gains are shifting demand toward smaller, more distributed inference deployments. Meanwhile, demands for connectivity continue to rise globally, demanding infrastructure that best minimizes latency and improves data distribution. This shift presents an opportunity for hybrid cable landing stations (HCLS)—a model integrating subsea connectivity with AI infrastructure—to support the next generation of AI workloads. Moving beyond hyperscalers Historically, AI infrastructure required 100–200MW data center campuses optimized for model training. However, advancements like DeepSeek’s efficiency gains are altering this model, reducing energy requirements and making 5–20MW AI inference hubs a viable alternative. Enterprises increasingly recognize that AI processing doesn’t need to be concentrated in massive, high-density clusters. Instead, regionalized AI workloads allow for more flexible, cost-efficient deployment while minimizing bottlenecks. Greater efficiency does not necessarily reduce overall demand. Instead, it enables broader AI adoption, shifting workloads to a wider range of locations and infrastructure types. As AI becomes more accessible and cost-effective, enterprises are reconsidering where and how their compute resources should be deployed. The role of hybrid infrastructure in AI deployment As AI workloads move toward distributed inference models, connectivity becomes a critical factor. Traditionally, cable landing stations (CLS) have been designed solely to handle subsea fiber traffic, routing data from international networks to terrestrial infrastructure. However, this model is evolving. Hybrid cable landing stations integrate subsea connectivity with AI processing, enabling localized compute power at network entry points. This reduces the need for long-haul data transport, cutting latency for AI-driven applications while optimizing bandwidth utilization. The benefits of this model include: Lower latency, with AI workloads processing data closer to the end user. Greater flexibility, allowing enterprises to deploy inference workloads at strategic global entry points rather than relying on centralized hyperscaler hubs. Improved scalability, supporting modular AI deployments that can adapt to changing infrastructure needs. Investment and infrastructure implications As these shifts take hold, investors and data center operators must rethink long-term strategies. The move away from ultra-large AI campuses suggests that speculative hyperscaler builds may carry greater risk, particularly those requiring extensive power commitments. Instead, mid-sized deployments (5–20MW) and modular colocation models are becoming more attractive investment targets. For enterprises, the ability to leverage regionalized AI infrastructure offers cost advantages while reducing reliance on traditional hyperscaler platforms. GPU-as-a-service providers and enterprise-owned AI deployments are also gaining traction, further diversifying the AI infrastructure landscape. AI is no longer confined to massive hyperscale campuses. As training efficiency improves and inference workloads become more distributed, the industry must adapt. Hybrid cable landing stations represent a critical evolution, merging subsea connectivity with AI infrastructure to enable faster, more flexible data processing. This shift has broad implications for infrastructure investment, data center design, and global connectivity strategies. The future of AI-driven networks will be defined not by scale alone, but by strategic placement, efficiency, and adaptability—a trend that forward-thinking enterprises and investors must embrace. Join Assured Comms and the subsea cable commuity next week at Submarine Networks EMEA , the world’s leading subsea connectivity event