China just solved two of the biggest data center limitations — and it did it in a very unexpected way

In a bold step toward the future of digital infrastructure, China has launched the world’s first commercial underwater data center powered entirely by offshore wind energy. This revolutionary project, based in Shanghai, not only pushes the boundaries of engineering but also addresses two long-standing problems in the tech industry: excessive energy consumption and lack of available urban land.

A game-changing solution under the sea

This underwater facility offers a dual solution to energy use and land scarcity. Thanks to the natural cooling of seawater, the center reduces its cooling energy needs from the usual 40–50% to under 10%, cutting overall energy consumption by nearly 40%. Simultaneously, it avoids the high costs and physical limitations of building on land.

The project is backed by a massive investment of 1.6 billion yuan (around 222.7 million dollars) and will deliver 24 megawatts of power once completed. Over 90% of this energy will be sourced from marine wind farms, demonstrating a highly integrated approach that combines AI, 5G, and green energy.

A new global benchmark for data infrastructure

While Microsoft’s Project Natick explored similar ideas back in 2015, it was China’s pilot in Hainan—launched in 2022—that proved the concept’s commercial viability. With no server failures reported in over two years, Shanghai’s new deployment represents a fully operational second-generation model.

This underwater cluster will support technologies like industrial IoT, AI platforms, and international e-commerce. As the world’s first of its kind, it positions China at the forefront of digital infrastructure innovation, while most other countries continue to expand traditional land-based centers.