By Eamonn Ryan
China has launched the world’s first wind-powered underwater data centre off the coast of Shanghai, marking a significant step in addressing the growing energy demands driven by the country’s rapid expansion of artificial intelligence (AI).
While underwater data centres offer clear environmental benefits, experts note that they may also pose risks to marine ecosystems.
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The Shanghai Lingang Undersea Data Centre demonstration project, which began operations in May, has a capacity of 24 megawatts. The facility is a joint venture between HiCloud Technology and state-owned China Communications Construction Company.
Situated more than 10km offshore and submerged approximately 10m beneath the sea surface, the data centre is powered by a nearby offshore wind farm. According to Chinese government figures, the facility consumes more than 20% less energy than a comparable land-based data centre.
The efficiency gains stem from two key factors: the use of renewable energy and the natural cooling provided by surrounding seawater. Cooling systems account for a substantial share of electricity consumption in conventional data centres, with between 25% and 40% of total power demand typically dedicated to preventing servers from overheating.
As AI adoption accelerates globally, data centres have come under increasing scrutiny for their environmental impact, particularly their intensive use of electricity and freshwater. Underwater facilities significantly reduce reliance on freshwater cooling systems, helping to address one of the industry’s most pressing sustainability challenges.
Recent research by the United Nations University Institute for Water, Environment and Health warned that the global water footprint of data centres could reach 9.3 trillion litres annually by 2030 – equivalent to the yearly domestic water needs of the entire population of sub-Saharan Africa.
HiCloud previously launched the world’s first commercial underwater data centre in Hainan Province in 2023. However, the Shanghai facility is the first to combine underwater infrastructure with offshore wind power generation. The project is located near Lingang, Shanghai’s high-tech free-trade zone, which is also home to Tesla’s Gigafactory Shanghai.
The launch aligns with China’s broader strategy to strengthen its AI capabilities. The government has identified AI as a cornerstone of future economic growth and technological development, releasing an action plan last year that called for accelerated data centre construction. Authorities have also committed to substantially increasing the availability of clean energy for AI infrastructure by 2030.
According to government figures, the Shanghai Lingang project received investment of approximately 1.6 billion yuan (R3.91-billion).
While underwater data centres offer clear environmental benefits, experts note that they may also pose risks to marine ecosystems. Potential concerns include disturbance of seabed sediments and localised seawater warming. Researchers believe these impacts are likely to be manageable but stress that ongoing environmental monitoring will be essential as the technology develops.
