Palau is considering another loan from the Asian Development Bank to link a second submarine cable to the country.
President Tommy Remengesau Jr said Palau needed a backup connection for its current communications cable in case of malfunction.
He cited recent examples in Tonga, Saipan and the Marshall Islands, where disrupted signals eliminated internet and telephone services for extended periods
The president said these cases demonstrated the importance of continuous telecommunications services.
The Marianas Variety reports Palau's Minister of Finance, Elbuchel Sadang, saying the cost of a second cable will be about $US25 million.
The loan was being discussed at this week's ADB meeting in Fiji, he said.
In 2017 through an ADB loan, Palau's first high-speed broadband internet connection went live.
Previously, Palau relied on satellites for internet connectivity.