The world's first wind-powered underwater datacentre has started operating off the coast of Shanghai, marking a significant step in China's efforts to address energy challenges posed by the artificial intelligence boom. The Shanghai Lingang undersea datacentre demonstration project, launched in May, has a capacity of 24 megawatts and is a joint venture between HiCloud Technology and China Communications Construction, a state-owned enterprise.
Location and power source
Located more than 6 miles (10 km) offshore and submerged 10 metres below the surface, the datacentre is powered by a nearby offshore wind farm. According to the Chinese government, this underwater facility reduces power consumption by over 20% compared to traditional land-based datacentres. This efficiency stems from both renewable energy use and the natural cooling effect of seawater immersion.
Energy and water savings
In conventional land-based datacentres, 25% to 40% of total electricity demand is dedicated to cooling servers with chilled water. Underwater datacentres eliminate much of this need, also reducing freshwater consumption. This is critical as the UN University Institute for Water, Environment and Health warned this week that datacentre water usage could reach 9.3 trillion litres by 2030, equivalent to the annual domestic water needs of sub-Saharan Africa's 1.3 billion residents.
Previous underwater datacentre projects
HiCloud launched the world's first commercial underwater datacentre in Hainan, southern China, in 2023. However, the Shanghai project is the first to be powered by offshore wind. The wind farm is visible from Lingang, a hi-tech free-trade zone in eastern Shanghai that also hosts a Tesla gigafactory. China is not the pioneer in underwater datacentre experimentation; Microsoft piloted a project in Scotland in 2018 with promising results, but progress has since stalled.
Dr Hanjiang Dong of Hong Kong Polytechnic University noted that while Microsoft proved the concept, China advanced faster in commercial deployment by integrating market demand, industrial capability, marine engineering, and policy support.
AI strategy and investment
China has made AI support a central pillar of its economic strategy. An AI action plan released last year called for accelerated datacentre construction, and the government pledged to significantly increase clean energy supplies for AI infrastructure by 2030. The Shanghai Lingang datacentre received 1.6 billion yuan (approximately £177 million) in investment, according to Chinese authorities.
Environmental considerations
Underwater datacentres pose risks to marine ecosystems, such as sediment disturbance and seawater heating. Experts believe these risks are manageable but require ongoing monitoring. Professor Rick Stafford, a marine biologist at Bournemouth University, stated: "An underwater datacentre is likely a good idea. While cooling with seawater will cause some localised elevated temperatures, these will not be far reaching."
Additional research by Yu-chen Li.
