China officially launched the world’s first commercial offshore wind power underwater artificial intelligence data center in the Shanghai Lingang New Area. The futuristic facility contains nearly 2,000 servers installed in pressure-resistant underwater modules located next to offshore wind turbines. Designed to support artificial intelligence workloads, big data processing and domestic large language model development, the project combines renewable energy with natural seawater cooling to reduce electricity use, land requirements and freshwater consumption. The Chinese developer said the underwater system has a power usage effectiveness (PUE) rating of about 1.15, significantly lower than many traditional land-based data centers.
Large scale underwater computing project near Shanghai
The project was launched by the Lingang New Area Management Committee, Shanghai Lingang New Area Investment Holding Group and Haiyun Technology. Additional operating agreements were subsequently signed with companies such as China Telecom, Shenergy Group and CCCC Third Aviation Administration.Construction of the facility will begin in June 2025 after the agreement is finalized. The project will be completed in October 2025 and trial operations began earlier this year. Full commercial operations will be officially launched in May 2026.The data center is located between Phases 1 and 2 of the Lingang Offshore Wind Farm, with direct connections to nearby renewable energy infrastructure. The entire project reportedly cost approximately 1.6 billion yen (approximately $226 million).
Nearly 2,000 servers deployed underwater
The underwater data center is being developed in phases, starting with a smaller 2.3 MW demonstration facility and then expanding to a full 24 MW commercial operation.There are nearly 2,000 servers inside the submarine module, designed to support artificial intelligence computing, big data annotation, 5G infrastructure services, domestic large language model training and cloud computing operations. China Telecom and local computing provider LinkWise have deployed GPU clusters within underwater modules to support artificial intelligence processing and data-intensive workloads.Unlike traditional server farms built inside large industrial buildings, portside facilities use sealed underwater capsules located beneath the ocean’s surface near offshore wind turbines. Developers say the design helps reduce land use while increasing cooling efficiency.
How seawater cooling works
One of the most important innovations of the project is its cooling system. Traditional data centers rely heavily on industrial air conditioning systems and cooling towers to prevent servers from overheating. These systems consume large amounts of electricity and often require large supplies of fresh water.Shanghai’s underwater data center switches to using seawater as a passive cooling mechanism. According to Haiyun Technology, the server heat changes the refrigerant in the copper tube from liquid to gas. The gas naturally rises to the upper cooling layer, and the surrounding seawater removes heat through the heat exchanger. Once cooled, the refrigerant condenses into liquid form and is returned to the server module by gravity.Developers say this creates a low-energy heat exchange cycle that greatly reduces the need for conventionally powered cooling systems.
Why PUE Ratings Matter
The facility’s power usage efficiency rating reportedly remains around 1.15.PUE measures how efficiently a data center uses electricity. A lower score means more energy is directed toward computing rather than cooling or infrastructure overhead.Due to the large cooling requirements, many traditional enterprise data centers operate close to 1.5 or even 2.0. In comparison, the Lingang underwater facility has a PUE of 1.15, ranking it among the most energy-efficient large data centers currently in operation.Project developers claim the system will reduce electricity consumption by 22.8%, completely eliminate the use of fresh water, and reduce land use requirements by more than 90%. These numbers are particularly important at a time when artificial intelligence infrastructure is rapidly increasing global electricity and water consumption.
Powered by offshore wind energy
Another major feature of the project is the integration of renewable energy. The underwater modules are located next to the Lingang Offshore Wind Farm, allowing the facility to capture the majority of its electricity directly from wind energy generated offshore.Reports show that more than 95% of the project’s electricity comes from renewable energy sources. This is especially important as artificial intelligence systems and GPU clusters continue to rapidly increase global power demand.China’s underwater project combines renewable energy, subsea engineering, artificial intelligence computing and natural cooling systems into an integrated platform. The project is widely seen as part of China’s broader efforts to strengthen its position in artificial intelligence infrastructure and green computing technology.
Underwater Engineering Challenges
Despite the efficiency advantages of underwater infrastructure, it also presents some engineering difficulties. Saltwater corrosion remains a major long-term problem as seawater gradually damages electronic equipment and metal structures. Engineers must also ensure that the underwater capsule remains completely sealed against pressure and water intrusion for several years.Maintenance is another major challenge. Replacing damaged hardware underwater is much more complex than repairing traditional server racks in ordinary buildings. As a result, operators rely heavily on sealed modular systems, remote monitoring and infrastructure redundancy to minimize the need for physical repairs.Undersea fiber optic and power cables also have reliability issues because underwater cable repairs are expensive and technically difficult.
Comparison with Microsoft Project Natick
The Shanghai project was compared to Microsoft’s experimental Project Natick, which tested underwater data center capsules off the coast of California in 2015 and then off Scotland’s Orkney Islands in 2018.Microsoft’s experiments show that underwater environments can reduce hardware failure rates because stable temperatures and sealing conditions limit oxygen exposure and human interference. However, Microsoft ended commercialization of the project in 2024 without moving to large-scale deployment, in part because maintenance and operational complexities remain difficult.China’s port-facing facility is different in that it has entered full-scale commercial operations at scale and is directly integrated with offshore renewable energy infrastructure.Although the Lingang project is widely described as the world’s first underwater data center for offshore wind, it is not the first underwater data center.That distinction belongs to an earlier commercial underwater data center project launched near Hainan, China. The Shanghai facility is unique in that it combines offshore wind power with large-scale underwater artificial intelligence computing infrastructure.
Why underwater data centers will become more common
The rapid development of artificial intelligence has greatly increased the global demand for power, cooling systems and data center land. Tech companies and governments are now exploring alternatives to traditional server infrastructure, including underwater data centers, floating computing platforms, liquid immersion cooling systems and even nuclear-powered artificial intelligence facilities.China’s underwater project is one of the most ambitious attempts yet to combine renewable energy generation with sustainable artificial intelligence computing infrastructure. If the port-facing system is successful in the coming years, similar offshore and underwater facilities may become an important part of the future global artificial intelligence infrastructure.
