Australia's SubCo to Deploy 850km Sydney-Melbourne Fiber Route, Eyes Cable Ship Purchase

Australian digital infrastructure firm SubCo has announced plans to build a new 850km terrestrial fiber network connecting Sydney and Melbourne, a greenfield route designed to provide critical diversity between Australia's two largest data center markets.

The project, designated SM-1, is scheduled to go live in June 2028. According to the company, the network will deliver a minimum of 96 fiber pairs along an entirely new, independent path, offering domestic route diversity that is currently lacking between the two metropolitan areas. SubCo is part of Bevan Slattery's Soda Group and already owns the Oman Australia Cable, while also developing several domestic and international subsea cable systems around Australia.

The announcement comes amid broader discussions about Australia's submarine cable infrastructure capabilities. Speaking at the AusNOG conference in Brisbane last month, Slattery said Australia needed to augment its survey capabilities and acquire its own vessel capable of laying and repairing submarine cables. He indicated that SubCo could potentially procure an uncrewed surface drone for surveys, as well as its own cable-laying vessel — something Australia currently does not possess — though he suggested the company would seek government funding for such an acquisition.

"I need to make a decision on whether or not I buy a cable vessel. I said I'll do it by the end of the year," Slattery said, adding that if a decision is made on that timeline, the vessel could be built and delivered by the end of 2029. Purchasing a cable ship could cost in the region of AU$250 million (US$174 million).

The SM-1 fiber route represents a significant addition to Australia's domestic digital infrastructure at a time when data center demand continues to surge across the country's eastern seaboard. By providing a new independent path between Sydney and Melbourne, the network aims to enhance redundancy and resilience for the growing volume of data traffic flowing between these key markets, reducing reliance on existing corridors that may be vulnerable to disruption.