A Chinese company plans to deploy an underwater data centre off Shanghai to cut cooling energy by 90%. The project, powered mostly by renewables, could reshape green computing — but raises environmental and technical challenges.

Power-hungry data centres run hot, so one Chinese company is planning to submerge a pod of servers in the sea off Shanghai in hopes of solving computing’s growing energy challenges.

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On a wharf near the city, workers were finishing a large yellow capsule — a bold move in alternative tech infrastructure that raises both ecological and commercial questions.

Harnessing the Ocean for Cooling

The world’s digital backbone — websites, apps, and AI systems — depends on vast data centres that consume immense amounts of energy.

“Underwater operations have inherent advantages,” said Yang Ye of maritime equipment firm Highlander, which is developing the Shanghai pod with state-owned construction partners.

Undersea servers can be cooled naturally by ocean currents, avoiding the energy-intensive air conditioning and water evaporation used in land-based centres.

The technology was previously trialled by Microsoft off Scotland’s coast in 2018, but the Chinese project — set to be deployed in mid-October — will be among the world’s first commercial underwater data services.

It will cater to clients such as China Telecom and a state-owned AI computing firm, aligning with China’s broader efforts to reduce data centres’ carbon footprints.

“Underwater facilities can save around 90 percent of cooling energy,” said Yang, Highlander’s vice president.

Technical Hurdles Beneath the Surface

Projects like this remain focused on proving technical feasibility, said Shaolei Ren of the University of California, Riverside.

Microsoft never commercialized its pilot but confirmed its success after retrieving its pod in 2020.

Highlander’s Shanghai system faced greater construction challenges than expected, said engineer Zhou Jun. The unit, built onshore in parts, will draw most of its power from offshore wind farms, with more than 95 percent sourced from renewables.

To protect the servers, the steel capsule features a glass-flake coating against corrosion, and an elevator system connects the submerged structure to an above-water access point.

Ren noted that connecting the offshore data centre to the mainland’s internet network is more complex than standard land installations.

Meanwhile, researchers in Japan and the U.S. have warned that underwater servers could be vulnerable to sound-wave-based cyberattacks transmitted through water.

Ecological Concerns and Future Prospects

Beyond technical issues, experts warn of potential impacts on marine ecosystems. Marine ecologist Andrew Want from the University of Hull said heat emitted by underwater data centres could alter marine habitats, attracting some species and repelling others.

“These are unknowns — there’s not enough research yet,” Want cautioned.

Highlander said a 2020 independent assessment of its earlier project near Zhuhai found no harmful temperature effects. Still, Ren emphasized that scaling up such systems could amplify thermal pollution risks.

“For megawatt-scale underwater data centres, the heat issue must be studied carefully,” he said.

While unlikely to replace land-based centres, Ren suggested that offshore facilities could serve niche applications, offering energy-efficient support for growing AI and cloud demands.

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