In the AI race, having a robust data center infrastructure to power it is essential, but first you need energy to power it all. The United States may lead the chip industry (at least, the strategic ones), but China follows closely at an unstoppable pace and furthermore, has the energy. And he is already beginning to connect the dots, showing off his technical power and ingenuity: already It has the largest data center in the worldis also a pioneer to submerge them under the sea. Now it has taken a twist with the first underwater data center that ‘drinks’ directly from the wind that just opened.
This project represents the perfect union of two of China’s strategic priorities: digital sovereignty and carbon neutrality. By placing computing infrastructure on the seabed and powering it directly with clean energy on siteChina is solving one of the great current technological problems: the insatiable energy consumption of AI and Big Data.
The project. About 10 kilometers off the coast of Shanghai, at the bottom of the East China Sea, a steel cylinder receives electricity directly from wind turbines and is cooled with sea water. It is the Lingang Subsea Data Centeran ambitious project promoted by Shanghai Hailan Cloud Technology (HiCloud) and built by CCCC Third Harbor Engineering.
It consists of a series of data storage and processing modules encapsulated in watertight and submerged containers, which are connected via two 35 kV submarine cables to offshore wind turbines operating off the coast of Shanghai. With a planned capacity of 24 MW in two phases, the first is already operational: it has a capacity of 2.3 megawatts and includes a ground control center, a vertical data module installed under the sea and two main 35 kilovolt submarine cables.
Why it is important. In addition to the fact that it does not occupy land, in cities as crowded as Shanghai it represents a valuable saving in land and that it can be installed close to where it is needed (if there is a coast, obviously), because it solves at the same time three structural problems of the sector:
- Refrigeration. Seawater acts as a constant and free heat sink, eliminating the need for industrial air conditioning systems that consume 40 to 50% of electricity. The metric that measures the energy efficiency of a data center by comparing the total energy consumed versus that used purely by the servers is the PUE, which for a standard data center on land is an average slightly higher than 1.5. The project promises to lower it to a figure not greater than 1.15.
- Without consumption of fresh water. Traditional data centers evaporate millions of liters of water to cool their servers, but this uses thermal exchange with the ocean, so it does not consume water resources.
- Take advantage of the surplus from wind power. One of the handicaps of wind energy is that generation depends on the wind and not on demand, so if you do not have a battery, the energy that is not consumed is wasted. Thanks to this direct connection, the data center absorbs wind production in real time, functioning as a constant consumer that reduces the waste of renewable energy due to lack of destination,
In figures. The magnitude of the project, with some official numbers:
- The budget is 1.6 billion yuan, about 200 million euros.
- Total planned operational capacity of 24 MW (2.3 MW in the first phase).
- The design PUE is less than 1.15.
- More than 95 percent of electricity comes from renewable sources.
Context. The name of HiCloud is not new because in fact it is an old acquaintance: it is the person behind the underwater prototype in front of Hainan which began to install in 2021. However, the international reference is the Natick project from Microsoft (2013–2024), which demonstrated the potential of underwater centers: only 8 of the 864 servers failed, a much lower mortality rate than that of any conventional data center in the same period and also got a very low PUE of only 1.07. Despite this, Microsoft shelved the matter: viability in terms of costs and maintenance is another story.
However, the Lingang project has top-level institutional support: is present on the List of Green and Low Carbon Technology Demonstration Projects of the NDRC, China’s top economic planning body.
How they have done it. Servers are placed in pressurized steel cabins filled with inert gases to prevent corrosion and fire with a design that maximizes interior space and minimizes the impact of waves. Heat is dissipated by pumping seawater through radiators located behind the racks.
The most complicated operation was raising the cabin in the open sea: the separation between the legs of the support structure and the steel piles on the seabed was only 0.18 meters and the maximum allowable deviation was 10 centimeters, so GPS and the Sanhang Fengfan crane vessel were helped.
Roadmap. The project follows a staggered progression that leaves certain unknowns. First was the prototype in Hainan (2021-2024). In 2025 the project began in Shanghai, whose phase 1 concluded in October of that year and it has just been launched a few weeks ago. The key phase that will take capacity up to 24 MW has no official public date.
Of course, the consortium of companies made up of HiCloud, Shenergy Group, China Telecom Shanghai, INESA and CCCC Third Harbor Engineering signed a cooperation agreement in October 2025 to scale to 500 MW linked to offshore wind, although where and when is unknown.
Yes, but. That 2.3 MW of phase 1 is practically a demonstration, not commercial infrastructure as a large conventional data center operates between 50 and 500 MW. And in addition, it has to resolve the issues that Microsoft’s Project Natick left unresolved, such as underwater maintenance: HiCloud has not published protocols or long-term repair costs. And scalability to 500 MW is at the moment more of an intention than a project
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