Parliamentarians approved a $4.8 million lease to a subsidiary of Google for the establishment of a transatlantic cable station.

Speaking in the House of Assembly, Lieutenant-Colonel David Burch, the Minister of Public Works, said that the tech giant would pay $4,867,500 for the 262-year lease of the Southside site.

The agreement between the Bermuda Land Management Corporation and Sea Grass Services Ltd was debated in the House for approval on Friday.

Colonel Burch added that the Nuvem — a new transatlantic subsea cable system to connect Portugal, Bermuda and the United States — would help the company to meet the growing demand for digital services.

The 5.9-acre site at Burrows Hill, Southside, had been valued at $4.65 million, $217,500 less than the price that had been agreed.

However, the minister listed benefits that the cable station would bring, including employment, the creation of infrastructure to support a technology hub for fintech and satellite stations and access to Google’s significant resources.

“It is intended for this agreement to act as a magnet, drawing other players in the communication industry, whether for laying their own cables or leasing from Google,” Colonel Burch told MPs.

“There have already been inquiries from other major companies into building data centres in Bermuda.”

Colonel Burch said the negotiations were not always smooth, but the company had “done their homework” and volunteered at the first meeting that, if the selected site was chosen, they would pay for an RC car track on the site to be moved to a new location.

“This is a significant achievement for the Government of Bermuda and the people of Bermuda,” he said.

Craig Cannonier, the Shadow Minster of Public Works and Tourism, said the news was positive and the One Bermuda Alliance was excited that Google had chosen to invest in Bermuda.

“We look forward to seeing how this is going to impact other businesses looking for a domicile like Bermuda,” he said.

“We recognise that all of the ancillary benefits from this are vital, and are definitely what we want to see in Bermuda.”

Lovitta Foggo, area MP, said that Google has sought to be a good community partner, and the project would result in additional jobs.

“While we may not have hundreds of jobs housed in that facility, there will be at least 20 or 30 jobs when they open up,” she said. “When construction takes place, construction workers will have employment.”

Ms Foggo also said that the agreement was a lease rather than a sale, so the Government was not “selling Bermuda”.

“While it is an extended lease, it is a rental lease,” she said.

Walter Roban, the Minister of Home Affairs, said the data centre would require “hundreds of millions of dollars” of investment because of the technology and infrastructure required, and that the company has talked about how it may include renewable energy into its operation over time.

He added that the company has discussed making “real investments” in St David’s and the wider community.

David Burt, the Premier, said the project came out of the Government’s economic recovery plan and was a sign of positive things to come.

“It is akin to the canary in the coalmine,” he said. “This is the start. This is not the end.”