China Switches On World's First Wind-Powered Underwater Data Centre for AI Workloads

China has begun operating what is being described as the world's first offshore wind-powered underwater data centre, as the country looks for more energy-efficient ways to support the rapidly growing computing demands of artificial intelligence.

The Shanghai Lingang undersea data centre, located around 10 kilometres off the coast and submerged roughly 10 metres below the sea surface, is powered directly by a nearby offshore wind farm while using seawater for natural cooling. The project combines renewable energy with underwater deployment in an effort to reduce both electricity consumption and freshwater usage.

The demonstration project has a planned capacity of 24MW and was developed by HiCloud Technology in collaboration with China Communications Construction. According to project details released by Chinese authorities, the facility reduces electricity consumption by more than 20% compared with conventional land-based data centres because it relies on the surrounding seawater rather than energy-intensive cooling systems.

Built for the AI Era

The project comes as AI-driven demand for computing infrastructure continues to surge globally, placing increasing pressure on electricity grids and water resources.

Traditional data centres typically devote a significant share of their power consumption to cooling servers. By placing computing infrastructure underwater, developers can use the surrounding ocean as a natural heat sink while eliminating the need for large volumes of freshwater typically required by many cooling systems. The Shanghai facility also draws power directly from offshore wind infrastructure through subsea cables, reducing reliance on conventional grid supplies.

Chinese reports indicate the facility is designed to support AI computing workloads and large-scale data processing while occupying substantially less land than traditional data centres. Developers claim the design cuts land usage by more than 90% and maintains a power usage effectiveness (PUE) of around 1.15.

Not the First Underwater Experiment, But a Commercial Milestone

The concept of underwater data centres is not entirely new. Microsoft tested its Project Natick prototype off the coast of Scotland in 2018 and later reported encouraging reliability results, although the initiative was never commercialised. China's latest deployment is significant because it combines underwater infrastructure with direct offshore wind integration at an operational scale.

Despite the potential energy and water savings, questions remain about the long-term environmental impact of releasing heat into marine ecosystems. Experts have suggested the effects are likely to be localised but say continued monitoring will be necessary as such facilities become more widespread.

As AI infrastructure expands around the world, projects such as the Shanghai Lingang undersea data centre could offer a glimpse into how future computing facilities are designed, particularly in regions where power efficiency, water conservation and land availability are becoming increasingly critical considerations.