A Swedish telecommunications company is preparing to build a €40mn fibre-optic network linking Estonia, Sweden and Finland, creating an additional data transmission route across the Baltic Sea amid growing concerns over the security of underwater infrastructure, Estonia's public broadcaster ERR.ee reported on October 21.

The investment is strategically important for the Baltic region, where repeated damage to underwater cables has exposed vulnerabilities in international communications.

Damage to subsea energy and communications infrastructure in the Baltic Sea between 2023 and early 2025 has heightened regional security concerns and prompted stepped-up monitoring by Nato and coastal states.

The new connection will provide an alternative route for data traffic, strengthening network resilience while accommodating rising demand for digital services.

Sweden-based GlobalConnect AB will develop and own the infrastructure, which will stretch approximately 550 kilometres across land and sea.

The route will begin on Sweden's Gotland island, continue through Estonia's Saaremaa and Hiiumaa islands, cross mainland Estonia and extend to Helsinki. The terrestrial section between Haapsalu and Viimsi will cover approximately 250 kilometres, while underwater sections will total another 300 kilometres.

The European Union will contribute €15.7mn through its Connecting Europe Facility Digital programme, covering approximately 39% of the project's estimated cost.

Estonia will not provide direct government financing but is assisting with regulatory procedures and international coordination.

Preparatory work began in 2025, with installation planned for 2026–2027 and commercial operations expected to start next year.

Estonia currently has two communications connections with Sweden and six with Finland, ERR.ee reported.