China is making waves in the tech world. The country has launched an ambitious underwater data center project that could reshape how we think about digital infrastructure. This isn’t just another tech experiment it’s a bold move that addresses some of the biggest challenges facing our AI-driven future.
The Ocean’s New Digital Residents
Construction began this June on a groundbreaking underwater data center located six miles off Shanghai’s coast. The facility represents China’s latest effort to solve a growing problem: how to keep massive AI systems cool without draining precious freshwater resources.
Hailanyun Technology, the company behind this $223-million project, isn’t starting from scratch. They’ve already proven the concept works. Their pilot project off Hainan’s coast has been operating successfully since December 2022.
The Shanghai facility will house 198 server racks in its first phase. That’s enough space for up to 792 AI-capable servers. The company expects operations to begin in September 2025.
Why Water Matters More Than You Think
Here’s something most people don’t realize about AI: every time you ask ChatGPT a question, somewhere a server gets thirsty. According to research, each 20 to 50 AI queries burns through about half a liter of freshwater.
Traditional data centers are water-hungry beasts. They cycle through hundreds of thousands of gallons daily just to stay cool. About 40 percent of their electricity goes toward cooling systems. That’s a massive environmental footprint.
China’s underwater approach flips this equation entirely. Instead of fighting against heat, they’re embracing the ocean’s natural cooling properties.
The Technology Behind the Deep
The underwater data centers work differently than their land-based cousins. Instead of air conditioning and water sprays, they use seawater pumped through radiators on server racks. The ocean naturally absorbs and carries away the heat.
This elegant solution delivers impressive results. Hailanyun reports their underwater facilities use at least 30 percent less electricity than traditional data centers. The Shanghai center will connect to a nearby offshore wind farm that supplies 97 percent of its energy needs.
The computing power is substantial too. The facility can handle the equivalent of training GPT-3.5 in just one day. That’s the same large language model OpenAI released in 2022 to fine-tune ChatGPT.
Learning from Microsoft’s Mistakes
China isn’t the first to try underwater data centers. Microsoft pioneered this technology over a decade ago with Project Natick. The company sank a shipping-container-sized capsule holding 864 servers 117 feet below Scotland’s coast.
Microsoft’s experiment was technically successful. Their underwater servers were eight times more reliable than land-based ones. The sealed, nitrogen-filled environment protected equipment from corrosion and human interference.
But Microsoft shelved the project by 2024. The company found it impractical for commercial deployment. Servicing underwater equipment proved too challenging and expensive.
The country aims to leapfrog these limitations. Zhang Ning, a UC Davis researcher specializing in low-carbon infrastructure, notes that Hailanyun moved from pilot to commercial deployment in less than 30 months “something Microsoft’s Project Natick never attempted.”
Environmental Concerns Run Deep
Not everyone is convinced underwater data centers are environmentally friendly. Critics worry about potential impacts on marine life, especially during heat waves when ocean temperatures spike.
A 2022 study warned that submerged data centers could harm aquatic biodiversity. The warm water discharged from these facilities would contain less oxygen that marine creatures need to survive.
Security presents another challenge. A 2024 study found that underwater data centers can be destroyed by certain underwater sound systems. This raises concerns about potential acoustic attacks.
Hailanyun dismisses these worries. The company cites assessments showing their facilities cause less than one degree of temperature rise in surrounding water. “It virtually did not cause any substantial impact,” says spokesperson Li Langping.
The Global Race Heats Up
China isn’t keeping this technology to itself. The underwater data center concept is gaining international attention. South Korea has announced plans to pursue similar projects. Japan and Singapore are considering floating data centers on the ocean’s surface.
The appeal is obvious. More than half the world’s population lives within 120 miles of coastlines. Underwater data centers could provide lightning-fast cloud services to these coastal populations while dramatically reducing environmental impact.
“China’s ambitious approach signals a bold shift toward low-carbon digital infrastructure, and it could influence global norms in sustainable computing,” says Shabrina Nadhila, an analyst at energy-focused think tank Ember.
Scaling the Depths
China’s underwater data center expansion is already underway. Recent reports indicate the Hainan facility has added new modules capable of processing 7,000 DeepSeek AI queries per second. The company has secured ten customers for its services.
This rapid scaling demonstrates China’s commitment to the technology. If successful, Li Langping expects Hailanyun to springboard toward large-scale deployments with Chinese government support.
The timing couldn’t be better. AI demand is exploding globally, and traditional data centers struggle to keep pace sustainably. China’s underwater approach offers a potential solution that other nations are watching closely.
The Future Flows Underwater
China’s underwater data centers represent more than just technological innovation. They signal a fundamental shift in how we approach digital infrastructure in an era of climate change and resource scarcity.
The project addresses multiple challenges simultaneously: reducing freshwater consumption, cutting energy usage, and providing reliable computing power for AI applications. While environmental and security concerns remain, the potential benefits are substantial.
As AI continues its rapid expansion, the pressure on traditional data centers will only intensify. China’s bold dive into underwater computing might just be the wave of the future. Other coastal nations will likely follow suit, creating a new generation of digital infrastructure that works with nature rather than against it.
The success of China’s underwater data centers could reshape global computing infrastructure. In a world where every query counts and every drop of water matters, sometimes the best solution lies beneath the waves.
Sources
- China Powers AI Boom with Undersea Data Centers – Scientific American
- China launches undersea data centre off Shanghai to cool AI boom – Firstpost
- China builds underwater data center – Semafor
- China launches world’s first AI-powered underwater data centre – Sify
- Microsoft finds underwater datacenters are reliable, practical and use energy sustainably – Microsoft
- Microsoft scrapped its ‘Project Natick’ underwater data center trial – IT Pro
- Chinese underwater data center expanded to support growing AI workloads – Light Reading
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