China Builds $223 Million Underwater Data Centers to Boost Energy Efficiency

In a revolutionary step towards sustainable computing, China has begun a groundbreaking project to build a series of data centers submerged in the ocean, a move that is projected to slash energy consumption by 30%. The first phase of the $223 million initiative, located off the coast of Shanghai, is set to become operational by September 2025.

The project, which is a collaboration between the Lin-gang Special Area Administrative Committee and Shanghai Hicloud Technology Co., Ltd., is a direct response to the massive energy demands of traditional data centers. By submerging the server modules in the ocean, the project leverages the natural low temperatures of the seawater to cool the high-performance servers, eliminating the need for energy-guzzling air conditioning systems.

“This is not just about saving power; it’s about redefining the future of digital infrastructure,” said Chen Jinshan, head of the Lin-gang administrative committee. “This fusion of advanced computing with offshore renewable energy positions us as a global hub for green, low-carbon solutions.”

The data centers will be powered almost entirely by nearby offshore wind farms, enabling them to operate with near-zero carbon emissions. This innovative combination of natural seawater cooling and renewable energy is expected to save 122 million kilowatt-hours of electricity annually.

The project builds on the success of a smaller-scale pilot program in Hainan province, which demonstrated the feasibility and reliability of underwater computing. The first phase in Shanghai will be a 2.3-megawatt demonstration facility, with a long-term plan to scale up to 24 megawatts. This ambitious project marks a significant stride in China’s efforts to align its technological growth with its climate goals and could set a new global standard for the industry.

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