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China is building an AI data center under the sea
The construction started in June (Representative image)

China is building an AI data center under the sea

Jul 17, 2025
12:27 pm

What's the story

China is building an underwater artificial intelligence (AI) data center off the coast of Shanghai. The facility, which started construction in June, aims to eliminate the need for excessive water consumption that keeps collection servers cool. This is especially important as these servers use a lot of energy and produce heat in the process. The move comes amid concerns over the massive amounts of water used by data centers to stay cool.

Tech infrastructure

Why data centers are moving toward automation

Data centers are critical for storing information and performing complex calculations for businesses. Their increasing reliance on automation has fueled demand for these facilities. However, they consume a lot of electricity and water as their servers run 24/7, generating heat that can damage equipment. Hence, constant cooling is a necessity in these setups.

Cooling costs

Data centers use a lot of water for cooling

Around 40% of a data center's energy is consumed in pumping and cooling water. This water is then sprayed into the air or allowed to evaporate near servers, significantly reducing their temperatures. The source of this water can be groundwater, rivers/streams, or treated wastewater. The Shanghai data center will be connected to an offshore wind farm for 97% of its energy needs.

Project details

Shanghai facility will train AI models like GPT-3.5

The Shanghai data center, built by Hailanyun, will have 198 server racks in its first phase. This is enough to accommodate between 396 and 792 AI-capable servers. It is expected to provide enough computing power to train a model on the scale of GPT-3.5 in just one day. The facility will use pipes to pump seawater through a radiator at the back of server racks to absorb heat and carry it away.

Environmental impact

Concerns over impact on marine biodiversity

Despite their technological advancements, submerged data centers have raised concerns over their potential impact on aquatic biodiversity during marine heat waves. A 2022 study found that during these periods of unusually high ocean temperatures, the water released from these facilities would be warmer and less oxygenated, making it difficult for marine life to survive.