China’s Bold Tech Dive: Underwater AI Data Center Surfaces Off Shanghai Coast
News Desk: In a groundbreaking move blending cutting-edge technology with climate consciousness, China has started building its first underwater artificial intelligence (AI) data center off the coast of Shanghai. This futuristic facility is designed to be cooled by the ocean itself—eliminating the need for the vast amounts of freshwater typically used by traditional data centers.
Deep Thinking, Cool Waters
The underwater data center—developed by Shanghai-based tech firm Hailanyun Technology (HiCloud)—officially began construction in June. It aims to tackle two of the tech industry’s biggest challenges: soaring energy demands and intense water consumption by AI-powered servers.
Traditional land-based data centers can consume millions of liters of freshwater daily just to keep servers cool. By moving operations below sea level, HiCloud plans to harness natural seawater for cooling, dramatically reducing its environmental footprint.
“The ocean offers a stable, low-temperature environment that can slash cooling energy costs by up to 40%,” a company official told local media.
Powered by Wind, Driven by AI
Adding to its green credentials, the facility will be powered almost entirely by offshore wind farms. According to developers, 97% of its energy will come from renewable sources, making it one of the world’s first commercial underwater AI centers fueled by clean energy.
The pilot phase will deploy a 2.3 MW modular unit, equipped with nearly 200 server racks capable of training high-level AI models such as GPT-3.5 within a day. The second phase is set to ramp up capacity to 24 MW, supporting even more powerful machine learning operations.
China Races Ahead
While global tech giants like Microsoft have experimented with underwater data centers (notably Project Natick), China is pushing ahead to commercialize the concept. This marks a shift from experimental to operational—and scalable.
HiCloud previously tested a similar prototype off Hainan’s coast in 2022, followed by its first commercial underwater unit in 2023. The new Shanghai installation is China’s largest such venture to date, with an estimated budget of 1.6 billion yuan (approx. $223 million USD).
Chinese state media is calling it a “global first” in building a renewable-powered, AI-ready underwater data hub.
The Bigger Picture
The project comes amid global concerns about data centers guzzling energy and water as AI applications explode in demand. By 2027, AI data infrastructure is expected to consume more than 6.6 billion cubic meters of freshwater annually—enough to supply a large city for years.
However, environmental experts caution that underwater data centers are not risk-free. Heat discharge, marine life disruption, and long-term ecological effects are yet to be fully studied—especially during marine heatwaves.
Why It Matters
China’s bold underwater leap could redefine the future of AI infrastructure—combining performance, sustainability, and space efficiency. If successful, it may set a global precedent for climate-smart data hosting, especially in coastal and water-scarce regions.
But as the world dives deeper into the AI era, the real challenge lies beneath the surface: Can innovation and ecology coexist under the sea?
