China Opens World's First Wind-Powered Underwater Data Center

China has inaugurated the world’s first wind-powered underwater data center (UDC) off the coast of Shanghai, marking a breakthrough in sustainable computing infrastructure. Located in the Lin-gang Special Zone within Shanghai’s China Pilot Free Trade Zone, the facility is submerged at a depth of 10 meters, where seawater serves as a natural cooling system, cutting energy consumption for cooling to less than 10%—a significant reduction from traditional data centers, which use 40-50% of their power for cooling. The project, a collaboration between private firm HiCloud Technology and state-owned China Communications Construction, required an investment of 1.6 billion yuan ($236 million). With an initial capacity of 24 megawatts, the UDC achieves a power-usage effectiveness (PUE) of 1.15, a benchmark considered state-of-the-art in the industry. The facility’s design eliminates the need for land and drastically reduces water usage while relying on over 95% green electricity, according to the Chinese government. This development builds on HiCloud’s 2023 launch of the world’s first commercial underwater data center in Hainan, but the Shanghai project is the first to integrate offshore wind power. Construction was completed in mid-October 2024, with the government highlighting a 22.8% reduction in energy consumption compared to traditional onshore data centers. The initiative reflects China’s broader strategy to secure energy supplies for artificial intelligence growth while reducing dependence on fossil fuels. China’s push for renewable-powered data centers aligns with its energy self-sufficiency goals, particularly as AI infrastructure expands. A 2025 UN report notes that only 32 countries host AI-specialized data centers, with 90% of global capacity concentrated in China and the U.S. While the U.S. has scaled back energy transition investments, China is accelerating renewable adoption, including wind, solar, and nuclear power, alongside reforms to its electricity market. A new energy law enacted last year mandates clean energy targets and market-based trading for solar and wind power, further solidifying the country’s leadership in sustainable tech infrastructure.