China Launches $226 Million Undersea Data Center Off Shanghai as AI Power Demand Surges
Updated
Updated · ECOticias · Jun 12
China Launches $226 Million Undersea Data Center Off Shanghai as AI Power Demand Surges
1 articles · Updated · ECOticias · Jun 12
Summary
A $226 million underwater data center has begun operating about 6.2 miles off Shanghai, with a 2.3-megawatt first phase now running and full planned capacity of 24 megawatts.
The facility is designed to curb AI infrastructure strain by using seawater cooling and direct links to nearby offshore wind farms; more than 95% of its electricity comes from renewables, according to CGTN.
Developers say the submerged design cuts electricity use by 22.8%, eliminates freshwater for cooling, reduces land use by more than 90%, and keeps power usage effectiveness around 1.15.
The site contains 192 server racks for AI-focused tasks including data annotation and domestic large language model development, and China Telecom computing clusters and local providers have already connected.
The project turns an idea previously tested by Microsoft off Scotland into commercial infrastructure as global data-center electricity use is projected to more than double to about 945 terawatt-hours by 2030.
With data centers now on the seafloor, how does this change the global competition for AI dominance?
As China moves its AI infrastructure offshore, what are the hidden risks of this underwater technological frontier?
Does cooling AI with the ocean solve our energy crisis or simply create a new ecological one?
Shanghai’s $236 Million Offshore Wind-Powered Underwater Data Center: China’s Bold Leap in Green Digital Infrastructure
Overview
China has launched the world’s first commercial offshore wind-powered underwater data center (UDC) near Shanghai, marking a major step in sustainable digital infrastructure. Backed by a $236 million investment and developed with partners like HiCloud Technology and China Communications Construction, the Shanghai UDC stands out for its fully commercial model, unlike Microsoft’s earlier experimental Project Natick, which was not commercialized and closed in 2024. Designed for large-scale deployment, the Shanghai UDC addresses the rising energy needs of AI and digital services, using ocean cooling and renewable energy to set a new standard for efficient, green data centers.