Digital Infrastructure – Investor playbook: from seabed to satellite

Digital infrastructure formed a key part of The UK Government’s new 10 Year Infrastructure Strategy released last year – c.£5bn private investment is expected. There is no doubt that the UK’s economic growth and productivity is now inextricably linked to high quality, reliable broadband networks. What's more, bridging the digital divide will likely have a huge social impact – enabling those from remote communities and disadvantaged schools to connect and participate in the digital economy. Ofcom released its Connected Nations report in November 2025 and stated that “to ensure people and businesses can derive maximum benefit from an increasingly digital society, connectivity must be secure and reliable”. 

Why subsea cables are now critical defence and national security assets 

When most people think of broadband, they picture fibre running to homes and offices. In reality, the UK’s digital economy depends on a hidden network: subsea fibre‑optic cables. These cables carry 95–99% of international data traffic, underpinning everything from cloud services and financial transactions to military communications. Without them, global connectivity would grind to a halt. (CSIS: “Safeguarding Subsea Cables: Protecting Cyber Infrastructure amid Great Power Competition”) link 

The UK Defence Secretary and NATO have recently warned of growing threats, with Russian vessel Yantar repeatedly shadowed while mapping underwater infrastructure. Adversaries already know where cables, landing points and pipelines are - making them easier to target or damage. See link.

What this means for investors 

To mitigate risk and protect value, investors should:

1. Underwrite for risk – ensure you add in a requirement around scenario analysis and make sure you price in security for assets in high-risk corridors
2. Resilience CapEx – if something goes wrong, you need to ensure there is provision for back up routes and contracts for fast repairs. O&M contracts should build in obligations around monitoring so there’s a clear provision for 24/7 surveillance. Performance metrics should also be included to protect asset value.
3. Stakeholder engagement - engage with government stakeholders and regulators early when planning or acquiring assets.
4. Insurance Strategy – parametic insurance will be crucial for these types of investments. Payouts are available automatically if certain conditions are met – this protects you from having to wait for a long investigation to conclude.
5. Diversify – consider using a mix of fibre and satellite in case the main route fails (more below) 
   (RealClearDefense: “Hybrid Attacks Rise on Undersea Cables in Baltic and Arctic Regions”) link 

Satellite investment programmes: the strategic complement 

While fibre remains the backbone for high‑capacity traffic, Low Earth Orbit (LEO) satellite broadband is emerging as a strategic complement.  

Europe is positioning itself to stay competitive and secure. Backed by UK and French leadership, initiatives like OneWeb signal a broader market opportunity - where multiple players, are driving innovation and resilience in satellite connectivity. These projects deliver gigabit-class services where fibre is uneconomic, accelerating universal service outcomes and fulfilling industrial strategy goals for advanced technology. 

As the industry scales up, satellite internet companies are ripe for investment from infrastructure funds. In the future, it is also likely that infrastructure investors will play a bigger role in acquiring satellite assets. 

Think of satellites as the next layer of connectivity. They can fill gaps where fibre can’t reach, provide backup routes when cables fail, and offer long-term, contracted revenues similar to traditional broadband networks. 

Here’s how funds can start shaping their strategy: 

1. Partner locally: pilot hybrid fibre + satellite services in rural areas by joining forces with regional broadband providers.
2. Lock in capacity: Secure long-term bandwidth agreements with satellite operators, just like dark fibre deals, to guarantee resilience for critical networks.
3. Bundle for resilience: Position satellite as an add-on to fibre in data centre and subsea corridor projects – a premium feature that protects uptime.
4. Follow the public money: there are government-backed programmes for universal service and defence grade connectivity – tap into these. 

Key takeaways

Digital infrastructure is now security infrastructure. For investors, that means: 

1. Factor in geopolitical risk when underwriting assets.
2. Build resilience into your portfolio – redundancy, rapid repair, and 24/7 monitoring.
3. Look beyond fibre – satellites are emerging as the next layer of connectivity, offering diversification and contracted revenues. 

Beyond the technical and financial aspects, planning consents, licensing, and contractual frameworks will shape the success of these investments. Infrastructure funds should engage legal advisers early to navigate regulatory approvals, structure risk allocation, and secure compliance for critical connectivity assets. 

Burges Salmon’s track record in Digital Infrastructure 

Burges Salmon has advised on some of the UK’s most significant fibre and broadband transactions, including: 

1. Fern Fibre Group Restructuring – Advising on a major restructuring of FTTP infrastructure businesses to enable growth as a standalone ISP targeting 5 million customers.
2. £40m Financing for Rural Fibre Expansion – Acting on financing to support fibre broadband rollout across rural Scotland. https://www.burges-salmon.com/burges-salmon-acts-on-40-million-financing-to-support-fibre-broadband-expansion-across-rural-scotland/
3. £240m Refinancing for Energy & Digital Infrastructure – Advising on a landmark refinancing to power a 1GW battery energy storage portfolio. https://www.burges-salmon.com/burges-salmon-acts-on-major-240m-refinancing-to-power-1gw-bess-portfolio/
4. £100m Loan Facility for Octopus Renewables Infrastructure Trust – Acting on a significant financing deal supporting renewable and digital infrastructure growth. https://www.burges-salmon.com/burges-salmon-acts-for-octopus-renewables-infrastructure-trust-on-100m-loan-facility/ 

If you would like to discuss anything we have covered in this article, please do get in touch with Stuart McMillan (Partner and Head of Infrastructure) or Alex Harkness.