Storing Google data in Cuba eliminates the long distances that signals must travel from the island through Venezuela to the nearest Google server. More than a half century after cutting virtually all economic ties with Cuba, the US has no direct data link to the island.
The deal removes one of the many obstacles to a normal internet in Cuba, which suffers from some of the world's most limited and expensive access.
The agreement does not affect Cuba's antiquated communications infrastructure or broaden public access to the internet, but it could make Google websites like YouTube or Gmail up to 10 times faster for users inside Cuba. Content hosted by other companies will not be affected.
Neither Google chairman Eric Schmidt nor Cuban officials spoke to the press after the signing ceremony in Havana.
Cuban officials appear to be accelerating their approvals of deals with US companies in an attempt to build momentum behind US-Cuba normalisation before President-elect Donald Trump takes office next month.
The Google pact was announced less than a week after Cuba gave three US cruise companies permission to begin sailing to the island next year. Officials familiar with the negotiations say other deals, including one with General Electric, are in the works.
Many US businesses say Cuba has been moving on most proposals so slowly that some suspect the government has been deliberately limiting the development of economic ties.
The Google programme could provide ammunition for US advocates of closer ties with Cuba. Both pro-detente forces and those arguing for a hard line on President Raul Castro's single-party government have been pushing for Cubans to have better access to information.
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