The Government is to lease almost six acres of land at Southside to a Google subsidiary for a transatlantic cable station.

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

The agreement between the Bermuda Land Management Corporation quango and Sea Grass Services Limited — the Google subsidiary — was tabled in the House for approval today.

Colonel Burch added: “In September 2023, Google announced a commitment to invest in Bermuda by installing the Nuvem — a new transatlantic subsea cable system to connect Portugal, Bermuda, and the United States.

“It is intended that the Nuvem will improve network resiliency across the Atlantic, help meet the growing demand for digital services, and add international route diversity to support the development of information and communications technology infrastructure for the continents and countries involved.”

Mr Burt said that 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.

In an earlier statement, Colonel Burch confirmed that the Bermuda Land Development Corporation and the West End Development Corporation officially merged to form the Bermuda Land Management Corporation on September 1 in a drive to improve efficiency.

Explaining the significance of the deal, Colonel Burch said: “I am proud to say that Bermuda will play an integral role by hosting a significant cable station to enable multiple cable landings.

“However, it is more than a cable landing just passing through the island. It will provide a backbone for a wider strategy of a digital port with all the requirements for supporting data and digital infrastructure.

“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 said there had been inquiries from other major companies into building data centres in Bermuda.

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.

Colonel Burch also noted that Google would pay to relocate the Remote Control Car Track based at the location.

He added: “A planning application will soon be submitted for a new RC Car track and all works will be funded entirely by Google.”