China Opens First Wind-Powered Underwater Data Center Near Shanghai
HiCloud Technology and China Communications Construction opened a 24 MW submerged facility off Shanghai, targeting 1.15 PUE using seawater cooling and offshore wind power.
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China Launches First Offshore Wind-Powered Underwater Data Center
China has commenced operations of the world’s first offshore wind-powered underwater data center near Shanghai, marking a convergence of three infrastructure challenges: energy density for AI workloads, renewable power scaling, and thermal efficiency at scale. According to Wired AI, the facility—a joint venture between private company HiCloud Technology and state-owned China Communications Construction—is submerged 10 meters below the surface in the Lin-gang Special Zone of the China Pilot Free Trade Zone and cost 1.6 billion yuan (approximately $236 million USD) to construct.
Design Targets and Thermal Innovation
The Lin-gang complex is designed to operate at an initial capacity of 24 megawatts and targets a power-usage effectiveness (PUE) of no more than 1.15 according to Wired AI—a figure representing state-of-the-art efficiency for the industry, where 1.0 is the theoretical maximum. The facility achieves this through seawater cooling, reducing cooling energy requirements to under 10% of total consumption, a dramatic contrast to conventional air-cooled data centers where cooling typically accounts for 40 to 50% of operational electricity demand.
According to statements cited by Wired AI, the Chinese government projects the facility will consume more than 95% renewable electricity and reduce energy consumption by 22.8% compared to conventional onshore data centers. However, these figures represent design targets rather than measured operational performance, which will require independent verification once baseline operational data becomes available.
Strategic Context: AI Infrastructure and Energy Security
This deployment reflects China’s dual strategic objectives: securing computing capacity for accelerating AI development while reducing fossil fuel dependence. Wired AI reports that a recent UN study identified only 32 countries hosting AI-specialized data centers globally, with approximately 90% of that infrastructure concentrated in China and the United States. HiCloud previously pioneered the concept with the world’s first commercial underwater data center in Hainan in 2023, but that facility relied on air-cooled systems; Shanghai marks the first integration of offshore wind generation with underwater siting.
Why This Matters
Infrastructure teams evaluating data center colocation for large-scale training workloads will need to assess whether underwater-sited facilities with renewable power integration can achieve the operational cost structure promised by design specifications. If the Lin-gang facility sustains 1.15 PUE in production, it would reshape cost-per-inference economics for hyperscalers constrained by thermal capacity rather than compute density. Independently published performance benchmarks over 6–12 months of operation will determine whether other countries’ data center operators adopt similar offshore-plus-seawater architectures, or whether geopolitical and regulatory barriers limit the model to jurisdictions with both coastal access and centralized energy planning.
Frequently Asked Questions
Why is underwater siting effective for data center cooling?
Seawater provides a constant, abundant thermal sink. The Lin-gang facility uses seawater to reduce cooling to under 10% of total energy consumption, versus 40–50% for air-cooled data centers on land.
What does a PUE of 1.15 mean?
PUE (power-usage effectiveness) measures total facility power divided by IT equipment power; 1.0 is theoretical maximum efficiency. A PUE of 1.15 means the facility uses 15% more power than the raw computation—considered state-of-the-art.
Is this facility already operational?
Construction was completed in mid-October 2025, and the facility has begun operations as of June 2026. However, the efficiency figures (1.15 PUE, 95% renewable energy) are design targets, not yet independently measured performance.
How does this compare to HiCloud's earlier underwater data center?
HiCloud opened the world's first commercial underwater data center in Hainan in 2023 using seawater cooling. The Shanghai facility is the first to also integrate offshore wind power for electricity.