Underwater data centers for AI
Analysis based on 6 articles · First reported Aug 17, 2026 · Last updated Aug 23, 2026
The development of ocean-based data centers could reduce operational costs and environmental footprint for AI infrastructure, potentially benefiting companies like Keppel and Microsoft. However, regulatory and environmental hurdles may slow adoption, with mixed sentiment for involved entities.
The AI boom is driving demand for data centers, raising concerns about energy, water, and land use. Developers are exploring ocean-based data centers, including underwater and floating facilities, to improve cooling efficiency and reduce environmental impact. Microsoft tested an underwater data center near United Kingdom — Scotland's United Kingdom — Orkney Islands in 2018, reporting lower failure rates, but ended the project in 2024. China launched a wind-powered underwater data center in China — Shanghai in 2025, now in commercial operation. Japan is testing floating data centers near Japan — Yokohama, and Singapore's Keppel is building a floating data center. South Korea is planning an underwater facility in South Korea — Ulsan, and DeepGreen Western Passage proposed a tidal-powered submersible data center in United States — Maine. These projects use seawater cooling and offshore renewables, but face challenges in maintenance and potential marine environmental impacts, including thermal pollution.
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