SHANGHAI
A Chinese tech firm is preparing to submerge a pod of servers off the coast of Shanghai, a move that could herald a significant shift toward sustainable data infrastructure. The underwater data center, slated for launch in mid-October, aims to drastically cut the carbon footprint of modern computing, but experts caution that the commercial deployment faces considerable ecological and technical challenges.
On a wharf near Shanghai, engineers are finalizing a large yellow capsule developed by maritime equipment company Highlander in collaboration with state-owned construction firms. The project seeks to capitalize on the ocean’s natural cooling capacity.
“Underwater operations have inherent advantages,” explained Yang Ye, vice president of Highlander. He claims the project could save up to 90 percent of the energy typically consumed for cooling servers. By utilizing naturally cold ocean currents instead of traditional air or water cooling, these undersea centers aim to meet the massive power demands driven by artificial intelligence (AI) expansion.
While the concept is not unprecedented—Microsoft successfully tested an underwater data center off Scotland in 2018—the Chinese initiative is among the first commercial deployments of its kind globally. The Shanghai facility is set to serve major domestic clients, including China Telecom and a state-owned AI computing company, aligning with Beijing’s broader goals to reduce the environmental impact of its digital economy. Experts attribute the project’s new momentum to strong government backing, including a reported 40 million yuan ($5.62 million) subsidy for Highlander’s earlier pilot project near Hainan.
Technical Hurdles Beneath the Waves
Despite the promise of sustainability, construction has been difficult. “The actual completion of the underwater data center involved greater construction challenges than initially expected,” said Zhou Jun, an engineer for the Shanghai project.
The capsule, assembled in sections onshore before being lowered into the sea, is designed to draw most of its energy from offshore wind farms. Highlander maintains that over 95 percent of the power used will be renewable. A protective glass-flake coating shields the steel structure from corrosion, though a small elevator provides access to a section above the water for routine maintenance.
However, experts like Shaolei Ren of the University of California, Riverside, warn that connecting the submersed servers to mainland internet networks remains technically complex. He also highlighted research suggesting that sound wave-based attacks could potentially target submarine data centers, raising novel cybersecurity concerns.
Ecological Unknowns and Thermal Pollution
Beyond technical feasibility, scientists are concerned about the environmental impact. Andrew Want, a marine ecologist at the University of Hull, cautioned that the heat emitted by underwater data centers could disrupt local marine ecosystems, potentially attracting certain species while driving others away.
“These are unknowns at this point—there’s not sufficient research being conducted yet,” he stated.
Highlander asserts that a 2020 independent assessment of its earlier Zhuhai project found no significant temperature increase in nearby waters. Yet, experts like Ren insist that large-scale deployments still pose thermal risks: “For megawatt-scale data centers underwater, the thermal pollution problem needs to be studied more carefully.”
While the concept is in its early stages, experts generally agree that underwater data centers are unlikely to replace existing facilities but could serve as a valuable complement, particularly in coastal regions where land is scarce or cooling resources are limited. China’s impending launch off Shanghai represents both a technological milestone and a crucial test of environmental responsibility in the global race to power the world’s digital future.

