Technology

China launches wind-powered underwater data center off Shanghai

wind-powered underwater – China has opened the world’s first underwater data center powered by offshore wind, submerged 10 meters off Shanghai. The project, built in partnership between HiCloud Technology and China Communications Construction, aims to cut cooling electricity, reduce fo

The facility sits under the waterline, 10 meters below the surface off Shanghai—quietly switching the rhythm of computing into something closer to the sea. And now, China says, it has made that concept real: an underwater data center powered by wind, operating as the country’s first of its kind.

The Lin-gang complex is located in the Lin-gang Special Zone, inside the China Pilot Free Trade Zone in Shanghai. It’s powered by offshore wind and designed from the start around the ocean’s own cooling role. Seawater is used as a natural cooling system. cutting the share of electricity devoted to cooling to less than 10 percent—an approach meant to directly tackle one of the biggest energy drains in conventional data centers. where air conditioning can account for 40 to 50 percent of total electricity use.

This project is the product of a collaboration between private company HiCloud Technology and state-owned China Communications Construction. The investment is 1.6 billion yuan, about $236 million, according to the figures provided for the initiative. The facility begins with an initial capacity of 24 megawatts.

Its efficiency is measured the way the industry measures itself: through power usage effectiveness, or PUE. A PUE of 1.0 is described as the maximum theoretical efficiency. For the Shanghai facility’s first phase. the design target is a PUE of no more than 1.15. described as state-of-the-art within the industry.

China isn’t starting underwater from scratch. HiCloud opened the world’s first commercial underwater data center in 2023 in Hainan, an island in southern China. But Shanghai is framed as a turning point because it is the first to operate using offshore wind power.

The work was finished in mid-October last year. When the Chinese government discussed the project’s aims. it pointed to a shift in environmental impact compared with traditional onshore data centers: the plan is described as using more than 95 percent green electricity. reducing energy consumption by 22.8 percent. and reducing water and land use by 100 percent and more than 90 percent. respectively.

That opening lands at a time when AI is reshaping the energy map. A report published by the UN says only 32 countries host data centers specialized in artificial intelligence. and of that global infrastructure. about 90 percent is concentrated in two nations: China and the United States. In that narrow space, data center power is more than an engineering challenge—it becomes a strategic lever.

China’s approach is to reduce dependence on fossil fuels while keeping computing capacity growing alongside AI development. The article frames this as a response to accelerated demand and a bid to lower both the environmental impact and the risk that comes with relying on external energy suppliers.

Beijing’s energy self-sufficiency push is presented as broad. ranging from exploring technologies using materials such as thorium and bismuth to expanding renewable energy and nuclear generation. Last year. a new energy law came into force that prioritizes developing renewable sources and hydrogen to reduce dependence on fossil fuels and strengthen national energy security. It also requires authorities to set minimum targets for consumption from clean sources.

Alongside the law, China is also reforming how electricity is bought and sold. As of June 2025. all solar and wind energy is required to be traded through market mechanisms or auctions. gradually eliminating old feed-in tariff schemes. The measures are described as supported by financial incentives and accompanied by the phasing out of legacy subsidies. with the goal of boosting investment in clean technologies and improving overall efficiency in the energy system.

Even with the engineering details—depth, cooling percentages, PUE targets—the story sits in a bigger race. The opening of the underwater wind-powered complex is described as part of a long-term effort to secure infrastructure for the next generation of artificial intelligence and other technological advances. while strengthening China’s position against the United States and the rest of the world in building that infrastructure.

This article originally appeared on WIRED en Español and has been translated from Spanish.

China underwater data center offshore wind power Lin-gang Special Zone PUE HiCloud Technology China Communications Construction AI energy demand renewable energy law electricity market reform

4 Comments

  1. I don’t get how “wind-powered” works under water. Like does the data center just sit there and the wind somehow powers it through seawater??? Also $236 million seems insane for servers.

  2. They say seawater cools it and cuts cooling electricity to under 10%, but I’m sure it’s just a marketing number. PUE of 1.15 sounds too good to be true, like they’re not counting other stuff. Also why Shanghai specifically, is the ocean doing better HVAC over there or what?

  3. China always does some sci-fi tech and then we have to copy it like 5 years later. Underwater sounds cool until you remember everything still has to be maintained, and 10 meters down is still salty and corrosive. If the goal is less power usage for cooling, wouldn’t it be easier to just put it somewhere colder instead of building a giant underwater thing?

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