China's Commercial Underwater Data Center Expands Role as AI Computing Hub
February 7, 2026
As the global demand for artificial intelligence computing surges, the industry faces mounting pressure over the immense energy and water resources required for cooling traditional data centers. In a pioneering move to address these sustainability challenges, the world's only operational commercial underwater data center, located off the coast of China's Hainan Province, has recently transitioned into a large-scale AI computing facility.
Initially deployed in 2022 and entering commercial operation in 2023, the facility consists of sealed steel capsules placed on the seabed near Lingshui. Over recent months, the installation of additional modules and upgraded hardware has enabled this unique infrastructure to take on far more demanding, high-density AI workloads. The servers within now process data, run cloud services, and train AI systems, mirroring the functions of land-based counterparts but with a critical difference: they are cooled directly by the surrounding seawater, eliminating the need for energy-intensive air-conditioning systems. This evolution marks a significant step in China's efforts to combine massive computing power with reduced energy consumption and a minimal land footprint. Another underwater data center project is under construction near Shanghai.
The environmental rationale for such facilities is compelling. Conventional data centers are notorious for their high electricity use, largely dedicated to cooling, and can strain local water supplies by consuming large volumes of potable water. By using the ocean as a natural heat sink, underwater data centers drastically cut energy use. They also avoid land clearance and eliminate community disturbances from noise, repairs, and logistics, issues that have led to delays for AI data center projects in several U.S. states.
However, the long-term ecological impact of this nascent technology requires careful study. While the data center is cooled by the water, it also slightly warms its immediate surroundings. Data from Microsoft's concluded Project Natick indicated temperature increases were highly localized and minimal, measured in fractions of a degree. Yet, researchers caution that even minor changes can affect temperature-sensitive marine life. A report from the University of Johannesburg highlighted that such warming "poses risk to aquatic biodiversity due to ocean deoxygenation." Potential risks from leaks, corrosion, or future scaling of such projects add to the concerns. On a positive note, structures like these may function as artificial reefs, attracting marine life. Microsoft's project incorporated cameras for monitoring, suggesting future facilities could aid marine research, though such features are not currently indicated for the Hainan site.
Source: slashgear
