China has become the first country in the world to operate a wind-powered underwater data center (UDC). Located off the coast of Shanghai, the complicated represents a significant advance in the country’s strategy to secure energy supplies amid the accelerated development of artificial intelligence, reduce dependence on fossil fuels and reduce the environmental impact of technological infrastructure.
The initiative is the result of a collaboration between private company HiCloud Technology and state-owned China Communications Construction, which included an investment of 1.6 billion yuan, equivalent to about $236 million.
The facility, with an initial capacity of 24 megawatts, is submerged to a depth of 10 meters in the Lin-gang Special Zone of China’s Shanghai Pilot Free Trade Zone. This location allows the employ of seawater as a natural cooling system, reducing the share of energy used to cold the infrastructure to less than 10 percent.
This feature solves one of the major energy consumption issues in conventional data centers, where air conditioning systems typically consume 40 to 50 percent of the total electricity needed to operate.
The thermal efficiency of UDC is directly reflected in the energy employ efficiency, or PUE. This metric is used in the industry to evaluate the energy efficiency of a data center; A value of 1.0 represents maximum theoretical performance. In the first phase, the Lin-gang facility is expected to achieve a PUE of no more than 1.15, a value considered state-of-the-art in the industry.
Following the same cooling principle, in 2023, HiCloud opened the world’s first commercial underwater data center on Hainan Island in southern China. However, the Shanghai complicated marks a milestone as the first facility to employ offshore wind energy.
The construction of the UDC was completed in mid-October last year. According to the Chinese government“Compared to traditional land-based data centers, the project is expected to use over 95 percent green electricity, reducing energy consumption by 22.8 percent and water and land use by 100 percent and over 90 percent, respectively.”
The opening of the complicated is an vital step in China’s efforts to optimize its renewable energy supply while maintaining its leading position in computing power related to the development of artificial intelligence.
A recently published UN report shows that only 32 countries have data centers specializing in artificial intelligence. Of this global infrastructure, approximately 90 percent is concentrated in two countries: China and the United States.
Both powers have taken steps to secure the energy needed to develop artificial intelligence, albeit with different approaches. While the United States has scaled back investments and proposals related to the energy transition, China is seeking to reduce its dependence on fossil fuels both to meet its climate goals and reduce its vulnerability to external suppliers.
In this context, Beijing’s energy self-sufficiency strategy stands out. As the world’s largest energy consumer, the country is exploring a variety of technologies, from the employ of materials such as thorium and bismuth to the accelerated expansion of renewable energies and nuclear power generation.
Last year, a fresh energy law came into force that prioritizes the development of renewable sources and hydrogen to reduce dependence on fossil fuels and strengthen the country’s energy security. The legislation also obliges authorities to set minimum consumption targets from spotless sources.
In parallel, the country began a deep reform of the electricity market. From June 2025, all solar and wind energy will have to be traded through market mechanisms or auctions, gradually eliminating the senior feed-in tariff systems. These measures, accompanied by financial incentives and the phasing out of existing subsidies, aim to stimulate investment in spotless technologies and improve the efficiency of the energy system.
China’s energy transition is not solely driven by environmental concerns. It is also part of a long-term economic and geopolitical strategy aimed at strengthening its technological and industrial autonomy. In this context, the launch of the UDC represents a significant step forward, strengthening the country’s position vis-à-vis the United States and the rest of the world in the race to build infrastructure that will support next-generation artificial intelligence and other technological advances.
This article originally appeared on WIRED in Spanish and was translated from Spanish.