The world’s first commercially operating underwater data center directly linked to offshore wind power, located about 10km off the coast of Shanghai in the Lingang Special Area in China is online. The project, developed by Shanghai HiCloud Technology, entered operational phase in early 2026 with its first modules already delivering computing capacity. This is a major milestone in the evolution of sustainable digital infrastructure.

Built approximately 10 meters beneath the sea surface and designed to scale to 24 MW, the facility uses seawater cooling and renewable energy integration to reduce energy consumption and carbon emissions. The launching of the world’s first offshore wind-powered underwater data center goes in China also positions it as a breakthrough model for next-gen AI computing infrastructure. This is while other investments continue to take shape in China as seen with Alibaba’s AI data center in Shaoguan, Guangdong province – a project that will use domestically-sourced semiconductors.

Project Development and Latest Status of the World’s First Underwater Data Center

Development Timeline

• 2023 – 2024: Concept validation and engineering design
• 2025: Construction and installation of subsea modules
• Early 2026: First phase enters operation

Current Status as of 2026

• First operational phase with 2.3 MW capacity commissioned
• Subsea module installed and connected via submarine cables
• Onshore control systems fully integrated
• Scaling roadmap toward full 24 MW capacity

The facility is now being used to support AI workloads, autonomous systems, and enterprise cloud applications, with expansion phases already planned.

Project Team Behind Shanghai Underwater Data Center (Lingang UDC)

Developer

• Shanghai HiCloud Technology

Parent Company

• Highlander

Engineering and Construction

• China Communications Construction Company (CCCC)
• CCCC Third Harbor Engineering Co.

Energy and Power Integration

• Offshore wind farm operators in Lingang coastal zone
• Shenergy Group – energy partner in offshore wind integration

Telecom and Data Infrastructure

• China Telecom

Government Stakeholders

• Lingang Special Area Administration
• Shanghai Municipal Government

World’s First Underwater Data Center to Launch in Shanghai, China

Reported July 12, 2025 – China has unveiled the world’s first commercial underwater data center, marking a groundbreaking achievement in green computing. Officially launched on Tuesday, the commercial project will be located in Shanghai’s Lin-gang Special Area and powered entirely by offshore wind energy.

The initiative — jointly developed by the Lin-gang Special Area Administrative Committee, Shanghai Lingang Special Area Investment Holding Group, and Shanghai Hicloud Technology Co., Ltd. — aims to merge computing infrastructure with renewable energy in a bid to meet global demand for low-carbon digital solutions.

“This project establishes a new model for underwater data centers, blending high-quality computing power with AI-ready scenarios,” said Chen Jinshan, head of the Lin-gang administrative committee. “It supports our goal to make Lingang a global hub for AI, cross-border data, and intelligent connectivity.”

Wind-Power and Water-Cooling at World’s First Underwater Data Center

According to the agreement, Hicloud will invest 1.6 billion yuan (approximately $222.7 million) in the two-phase Shanghai Lingang UDC project. The facility will use natural seawater for cooling and offshore wind to supply over 90% of its energy needs — enabling zero carbon emissions.

The first phase involves a 2.3 MW demonstration facility expected to be operational by September 2025. The second phase will scale capacity to 24 MW, targeting a power usage effectiveness (PUE) below 1.15 — a benchmark in energy-efficient data centers.

The world’s first underwater data center will host modular computing units cooled directly by seawater. This reduces refrigeration power usage from up to 50% to under 10%, slashing total energy consumption by 30–40% compared to conventional land-based centers.

Also Read: Amazon to Invest $20B in Expansion of its Data Centers and AI Infrastructure in Pennsylvania

Based on Proven Technology

The project draws inspiration from Hicloud’s successful 2022 deployment in Hainan, which hosts data modules over 30 meters underwater. With over 675 petaflops of computing power and zero server failures to date, the Hainan model proved the feasibility of subsea computing.

Now, Shanghai’s UDC takes the concept further by adding offshore wind integration, making it not only more sustainable but commercially scalable.

The facility is expected to support industries like AI, 5G, industrial IoT, and global e-commerce — further solidifying China’s position as a leader in green tech infrastructure.

Also Read: Data center construction boom around the world 

Fact Sheet for World’s First Underwater Data Center in Shanghai, China

Location: Lin-gang Special Area, Shanghai

Developer: Shanghai Hicloud Technology Co., Ltd.

Depth: 10 meters underwater

Investment: ¥1.6 billion ($222.7 million)

Power Source: Offshore wind (more than 95%), zero carbon emissions

Cooling System: Natural seawater cooling

Energy Efficiency: PUE less than 1.15

Phase 1: 2.3 MW demo unit (operational by Sept 2025)

Phase 2: 24 MW full capacity

Key Benefits:

• 30 – 40% lower energy use compared to land data centers
• Reduced land usage
• No server failures reported in trial models
• Zero freshwater consumption
• Significant emissions reduction and improved efficiency

Target Applications: AI, 5G, industrial IoT, cross-border e-commerce

Significance: First commercial deployment of a subsea data center powered by renewable energy