Like oil, can Iran control the flow of data? | DW News

Key Concepts

• Submarine Fiber Optic Cables: The physical infrastructure of undersea cables that carry the vast majority of global internet traffic, financial data, and communications.
• Strait of Hormuz: A critical maritime chokepoint connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea, serving as a vital artery for both oil shipments and digital data.
• Digital Sovereignty/Extraterritoriality: The attempt by a state (Iran) to exert legal control over international tech companies by leveraging control over physical infrastructure.
• AI Infrastructure: The massive data-processing and connectivity requirements needed for artificial intelligence, which rely heavily on stable, high-speed undersea cable networks.

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1. The Nature of the Iranian Threat

Iranian state media and semi-official news agencies have proposed charging international companies fees for the use and maintenance of submarine internet cables passing through the Strait of Hormuz. Beyond the potential for new revenue, this move is interpreted as a strategic maneuver to force global tech giants—such as Amazon and Meta—to comply with Iranian law if they wish to maintain access to these data pathways. Experts view this as a "veiled threat," signaling that Iran is willing to damage or disrupt critical digital infrastructure to exert geopolitical leverage.

2. Strategic Importance of the Strait of Hormuz

The Strait of Hormuz is not only a chokepoint for global oil supplies but also a linchpin for global digital traffic. It hosts several major fiber optic cables that connect India and Southeast Asia to Europe, passing through the Gulf States and Egypt. These cables facilitate:

• Global Communications: Real-time data transmission between continents.
• Financial Transactions: The backbone of international banking and trade settlements.
• Regional Connectivity: Essential data flow for countries within the Middle East.

3. Implications for Future Digital Infrastructure

A significant concern raised is the impact on the development of AI infrastructure. As companies plan massive investments in data centers and AI-driven technologies, the security of the underlying physical network becomes paramount. The threat of disruption or legal interference by Iran forces a re-evaluation of whether the region is a secure location for "the digital future." The transcript suggests that companies may begin to question the viability of routing critical infrastructure through this volatile region.

4. Geopolitical and Economic Risks

The core argument presented is that Iran is attempting to extend its "stranglehold" from oil shipments to the digital realm. By threatening the integrity of submarine cables, Iran is creating a scenario where:

• Tech Companies face legal coercion: Firms may be forced to operate under Iranian jurisdiction to ensure their data traffic remains uninterrupted.
• Global Economic Vulnerability: Any physical damage to these cables would have "knock-on effects" far beyond the Middle East, potentially destabilizing global financial and communication networks.
• Precedent for Other Actors: There is a concern that other geopolitical actors may observe these threats and the subsequent international response, potentially leading to a normalization of using digital infrastructure as a bargaining chip in international conflicts.

5. Synthesis and Conclusion

The situation in the Strait of Hormuz represents a shift in how physical infrastructure is being weaponized in the digital age. While immediate, large-scale disruption is not expected to occur "tomorrow," the rhetoric from Iranian state media marks a significant escalation. The primary takeaway is that the global reliance on a few concentrated undersea cable routes creates a systemic vulnerability. Policymakers and tech corporations must now weigh the efficiency of these routes against the long-term security risks posed by regional actors who view digital infrastructure as a tool for political and legal leverage. The consensus is that stakeholders must remain vigilant regarding how these threats are interpreted and acted upon by other global powers.