The launch of China’s underwater data centre marks a major milestone in the evolution of sustainable computing infrastructure, as global demand for AI-driven computing continues to surge. With data centres consuming massive amounts of electricity, land, and cooling resources, countries are now exploring unconventional solutions such as underwater and offshore systems. China has taken a lead in this race by launching the world’s first operational underwater data centre powered by wind energy near Shanghai, combining renewable power with ocean-based cooling efficiency.

The facility is part of the Shanghai Lingang Undersea Data Centre Demonstration Project and reflects China’s push to reduce energy intensity in high-performance computing while addressing growing concerns around water usage and carbon emissions from traditional data centres.

What Makes This Underwater Data Centre Unique

The Shanghai Lingang Undersea Data Centre is located in the Lingang high-tech zone in eastern Shanghai, an area already known for advanced industrial development, including Tesla’s Gigafactory. The facility sits approximately 10 metres below sea level and officially began operations in May.

• Developed by HiCloud Technology and China Communications Construction Company
• Located in Shanghai’s Lingang free-trade zone
• Submerged 10 metres underwater
• Operational capacity of 24 megawatts
• Completed in October last year at a cost of around $225 million

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How Wind and Ocean Energy Power the System

One of the key innovations in China’s underwater data centre is its shift toward clean and integrated energy systems. Instead of relying on traditional fossil-fuel-based electricity grids, the facility is powered mainly by nearby offshore wind farms, creating a more stable and lower-carbon energy supply for intensive computing workloads.

The system operates on around 95% renewable energy, is directly connected to offshore wind infrastructure, and uses natural seawater for cooling instead of conventional mechanical cooling systems. This significantly reduces its dependence on traditional power grids while improving overall energy efficiency and sustainability.

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Major Reduction in Energy and Water Usage

Traditional data centres require large amounts of electricity for cooling systems and significant volumes of fresh water. Submerging servers in the ocean changes this equation entirely by using the surrounding water as a natural cooling medium.

• 22% lower energy consumption compared to land-based data centres
• Over 90% reduction in water usage for cooling
• Eliminates heavy reliance on freshwater cooling systems
• Improves operational efficiency through passive thermal regulation

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Environmental Opportunities and Concerns

While underwater data centres offer clear efficiency benefits, they also raise environmental concerns that are still being assessed by researchers and regulators. The Shanghai project, in particular, is being closely monitored as a real-world test case for large-scale ocean-based computing infrastructure. Experts have pointed to potential risks such as disturbance of seabed ecosystems, localized warming in marine environments, and the challenges associated with long-term underwater maintenance. These factors highlight the need for strict and continuous environmental impact monitoring as such technologies scale.

The United Nations University estimates that global data centre water consumption could reach 9.3 trillion litres by 2030, enough to meet the annual domestic needs of 1.3 billion people in sub-Saharan Africa.

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Global Competition in Next-Gen Data Centres

The launch of China’s underwater data centre is part of a broader global race to redefine data infrastructure. While China has moved ahead with operational deployment, other countries and companies are exploring competing approaches.

• Microsoft previously tested underwater data centres in Scotland (Orkney)
• US startups are developing floating, wave-powered data nodes
• Space-based data centre concepts are being explored by aerospace firms
• India is researching orbital data centres using satellite-based computing systems

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The Future of Computing Goes Offshore

The underwater data centre near Shanghai represents a shift in how nations are approaching the future of high-performance computing. As AI demand accelerates, traditional infrastructure is struggling to keep up with energy, land, and water requirements. By moving computing underwater and integrating renewable energy sources, China is testing a model that could redefine global data infrastructure design.

While still a demonstration-scale project, it signals a future where data centres may no longer be confined to land, expanding instead into oceans, skies, and potentially even space.