Developers are increasingly looking to the ocean as a potential site for artificial intelligence infrastructure, with the aim of building underwater data centers that could enhance energy efficiency, improve cooling methods, and reduce the usage of fresh water and land compared to traditional facilities located on land.
My research delves into the effects of emerging technologies on society, organizations, and the environment, particularly focusing on artificial intelligence and the data centers that are essential for its development. Underwater data centers present a promising strategy for bolstering AI advancements.
However, relocating servers beneath the waves doesn't eliminate existing environmental challenges associated with data centers, including high energy consumption and carbon footprints. Furthermore, it raises concerns regarding the protection of marine ecosystems, prompts regulatory questions, and complicates maintenance and expansion efforts. The future viability of underwater data centers as sustainable alternatives hinges on addressing these economic, technical, and environmental hurdles.
In September 2025, an underwater data center was in the works at a Chinese shipyard, marking a new chapter in ocean-based AI infrastructure.
The exploration of submerged data centers began in earnest with Microsoft’s 2015 initiative to investigate their potential, benefits, and challenges. Notably, the company established a waterproof data center on the seabed near the Orkney Islands in Scotland in 2018, which housed 864 servers connected to the mainland via an undersea cable.
After two years of monitoring, Microsoft found that the failure rate of servers in its underwater facility was about one-eighth that of similar land-based systems. While the company continues to explore the reasons behind this anomaly, the current hypothesis suggests that the sealed underwater setting minimizes exposure to oxygen, humidity, temperature shifts, and physical disturbances during maintenance.
Despite these promising findings, Microsoft discontinued the project in 2024 and opted against further underwater facilities. Although the company did not specify the reasons, analysts suggest that regulatory issues, environmental permitting, and the need for quicker upgrades were likely factors. This pivot means that Microsoft is currently concentrating on expanding its land-based data centers, which are easier to scale and maintain.
Nevertheless, innovation continues elsewhere. China unveiled what could be the world’s first wind-powered underwater data center situated in Shanghai, which opened in June 2025 and commenced full commercial operations by May 2026. This $226 million facility employs seawater for cooling, avoiding the need to chill freshwater and resulting in at least 30% lower energy consumption compared to conventional data centers. Offshore wind turbines also contribute to reduced reliance on fossil fuels and lower carbon emissions.
In Japan, a novel approach is being tested with data centers placed on floating platforms that utilize seawater for cooling, optimizing conditions for solar and wind energy production, and minimizing land use. A floating data center in shipping containers commenced operations near Yokohama in 2025, powered by solar panels on the same platform, with battery storage for energy management. This trial is scheduled to run until March 2027.
Singapore is also advancing its floating data center capabilities, with infrastructure company Keppel beginning construction on a four-story floating facility in 2026, expected to be operational by 2028. This center will utilize seawater for enhanced cooling while preserving treated water resources and making efficient use of Singapore's available land.
Furthermore, Ulsan, South Korea, has embarked on plans for a large underwater data center set to accommodate over 100,000 servers, aiming to consume 30% less energy through seawater cooling techniques.
In Maine, DeepGreen Western Passage is proposing an innovative submersible AI data center in the Bay of Fundy. This facility will be powered by tidal turbines that harness the area's strong tidal currents.
Even land-based data centers are beginning to leverage seawater cooling, as seen with Portugal's SIN01 AI data center in Sines, which uses Atlantic seawater to cool its systems before returning it to the ocean.
