In today’s interconnected world, subsea cables are the unseen arteries that power global communications with underwater cables carrying approximately 99% of the world’s internet traffic across continents. As carriers collaborate to expand their network infrastructure, the recent announcement between Sparkle, Telecom Italia’s wholesale arm and Valencia Digital Port Connect (VDPC), a Spanish telecommunications provider, highlights how strategic collaborations between infrastructure players continue to shape the future of digital connectivity. But as ownership of Sparkle is about to change, could this influence its long-term role in global infrastructure?
Sparkle, together with VDPC and private equity firm Teset Capital, has agreed to land the Barracuda Subsea cable at Sparkle’s Genoa Landing Station. The project aims to deliver a high-capacity, low-latency link between Spain and Italy. Built on an “open cable system” architecture, their “Barracuda subsea cable” project will feature 12 fibre pairs, each capable of 32Tbps, ensuring long-term scalability and flexibility. The project has an estimated total investment of €100m and is scheduled to be ready for service early in 2028.
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This agreement is more than a fibre connection; it illustrates how cooperation between telecom service providers can help maximise the value from existing network infrastructure. By choosing Sparkle’s Genoa Landing platform rather than building its own infrastructure, VDPC gains immediate access to major European interconnection hubs, including terrestrial networks and internet exchange points already present at the Genoa Data Exchange in Lagaccio. This provides the carrier with multiple benefits while removing the regulatory obstacles that it could encounter if it chose to develop its own landing infrastructure from scratch.
For Sparkle, the benefits flow in both directions. Under the broader agreement, Sparkle will acquire the infrastructure assets on the Barracuda Subsea cable and colocation space at the Valencia Cable Landing Station, designed to support Barracuda and future subsea cable systems. The acquisition will enhance Sparkle’s reach into the Iberian Peninsula, strengthening its footprint in key Mediterranean markets and extending connectivity opportunities into the emerging West African region.
Brendan Swan, senior analyst at GlobalData, said: “What makes this collaboration especially compelling is not just the technology itself, but how clearly it signals a broader shift in the industry’s direction. Telecom Italia is finalising its divestment of Sparkle, its wholesale business unit, to a consortium between Italy’s Ministry of Economy and Finance and Asterion subsidiary, Retelit.
“The deal has yet to be fully finalised and was originally expected to close by late 2025. This move reflects a strategic effort by the Italian government to maintain influence over critical digital infrastructure while unlocking investment and focus for Sparkle’s future growth.”
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By GlobalDataSwan concludes: “Seen in this light, this announcement signals strong confidence in Sparkle’s role in the region and evolution as a key digital gateway for Europe and further validates the strategic value of both the Barracuda subsea cable system and the Valencia Cable Landing Station, enhancing its appeal to other international partners.”
