- Canada is exploring alternative data routes amid worsening relations with Washington
- Norwegian firm Bulk proposes a 2,800-mile cable bypassing American territory entirely
- The proposed transatlantic connection could cost more than $620 million
Worsening relations between Washington and Ottawa have prompted Canada to explore alternatives to relying on the United States for international data connections.
Norwegian company Bulk is proposing a 2,800-mile undersea cable linking southern Norway with Newfoundland and Labrador before continuing across Canada without passing through American territory.
The company is seeking a Canadian majority partner to help finance the Leif Erikson project, which is expected to cost more than $620 million.
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Leif Erikson offers an alternative transatlantic route
The planned connection would reach Happy Valley-Goose Bay before following an underground route through Quebec towards Montreal, requiring additional construction across Canadian territory.
Bulk co-founder Peder Nærbø has promoted the proposal as part of a Canadian sovereign communications network designed to provide direct access to European infrastructure.
According to details presented to prospective investors, the system would support high-capacity data transfers for AI, telecommunications and large-scale computing operations.
Nærbø has questioned the resilience of Canada’s international communications infrastructure, arguing that its existing connections leave the country vulnerable to disruptions.
Bulk has spent approximately five years trying to advance the initiative, although securing the necessary approvals, investment and partners remains a substantial obstacle.
The company has already installed more than 6,200 miles of cable across land and underwater routes, supporting its activities in digital infrastructure and connectivity.
Its stated ambition is to help Nordic renewable electricity supply the energy requirements of digital infrastructure, including facilities serving computing-intensive industries.
Canadian ownership and regulatory challenges
Despite attracting potential backers, the project still requires additional financing, regulatory approvals and agreement between Canadian and European authorities on its route.
Bulk has considerable Canadian financial ties, with 65% of the company owned by a property subsidiary of Sun Life Financial, alongside investments from several Canadian pension funds.
However, existing Canadian ownership does not eliminate the need to secure a majority partner willing to support the project’s development and construction.
Canadian Industry Minister Melanie Joly met Nærbø earlier this year, although her department declined to comment specifically on Leif Erikson.
According to Bloomberg, the department said that protecting infrastructure security and resilience remained a priority for Prime Minister Mark Carney’s government.
Canada has relatively few international submarine cable connections that avoid American territory, and none is owned by a Canadian company.
One major alternative, the Topaz cable, connects Canada and Japan and belongs to Alphabet, Google‘s parent company.
The European Union and Canada must still coordinate the proposed cable’s route and approve the project before construction can advance.
Its planned underground section would cover approximately 1,180 miles within Canada, requiring support from Indigenous communities along the route.
Canada and Europe also intend to endorse a statement in Montreal on October 29, 2026 concerning improved digital connections between Europe, Canada and Asia.
Via Tom’s Hardware
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