China has launched what officials describe as the world’s first commercially operational underwater data centre, marking a major step in energy-efficient digital infrastructure development.
The underwater facility has been built near Shanghai in the Lingang Special Area and is located around 35 metres below sea level. The project was jointly developed by Chinese authorities and HiCloud Technology with an estimated investment of $226 million.
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According to reports, the data centre contains around 2,000 servers designed to support artificial intelligence workloads, cloud computing operations and 5G services. Officials say the project combines advanced computing infrastructure with offshore wind energy generation to reduce electricity consumption and improve sustainability.
China unveils ‘world’s first’ underwater data center — 2,000 server facility is powered by offshore wind, and cooled by the sea, making it one of the most efficient around https://t.co/AdNSVVpplR
— TechRadar Pro (@TechRadarPro) May 21, 2026
Unlike traditional land-based data centres, the underwater facility uses surrounding seawater as a natural cooling system for its servers. Experts say this method can significantly reduce the massive energy demand typically required for cooling conventional data centres.
Globally, data centres consume large amounts of electricity because servers generate intense heat during operations. Cooling systems are therefore essential to maintain performance and prevent overheating, especially as demand for AI and cloud-based technologies continues to grow.
Chinese developers believe the underwater model could help address both environmental and energy challenges associated with rapidly expanding digital infrastructure.
Technology analysts say the project represents an important experiment in sustainable computing and could influence future data centre construction worldwide if the model proves successful over time.
The launch comes as countries and technology companies increasingly search for innovative ways to reduce carbon emissions and operating costs linked to digital services.
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Officials have not yet disclosed the full operational capacity of the facility, but they say the centre is fully capable of handling high-performance computing tasks while maintaining lower energy consumption compared to conventional data centres.
The project is being closely watched by global technology and energy sectors as interest in environmentally friendly computing solutions continues to rise.