China opens the world’s first wind-powered underwater data center

It became China The first country in the world to operate underwater Data centeror UDC, powered by winds. The complex, located off the coast of Shanghai, represents a major advance in the country’s strategy to secure energy supplies in the face of the accelerating growth of artificial intelligence, reduce dependence on fossil fuels, and reduce the environmental impact of technological infrastructure.

The initiative is the result of cooperation between private company HiCloud Technology and state-owned China Communications Construction, which included an investment of 1.6 billion yuan, equivalent to about $236 million.

With an initial capacity of 24 MW, the facility is submerged at a depth of 10 meters in the Lin Gang Special Zone, within the China Free Trade Pilot Zone in Shanghai. This location allows seawater to be used as a natural cooling system, reducing the percentage of energy used to cool the infrastructure to less than 10 percent.

This feature solves one of the major challenges related to energy consumption in traditional data centers, where air conditioning systems typically account for 40 to 50 percent of the total electricity required for operation.

The thermal efficiency of a UDC is directly reflected in its power use effectiveness, or PUE. This metric is used by the industry to evaluate data center energy performance; 1.0 represents the maximum theoretical efficiency. In its first phase, the Lin-gang facility is designed to achieve a PUE of no more than 1.15, a number considered state-of-the-art in the industry.

Under the same cooling principle, HiCloud opened the world’s first commercial underwater data center in 2023 in Hainan, an island in southern China. However, the Shanghai complex represents a milestone as the first complex to operate using offshore wind energy.

The construction of the UDC was completed in mid-October last year. According to the Chinese government“Compared with traditional onshore data centers, the project is designed to use more than 95 percent green electricity, reducing energy consumption by 22.8 percent, and water and land use by 100 percent and more than 90 percent, respectively.”

The opening of the complex is an important step in China’s efforts to improve energy supply through renewable sources and, at the same time, maintain its leadership in computing power associated with the development of artificial intelligence.

A report recently published by the United Nations indicates that only 32 countries host data centers specialized in artificial intelligence. Of this global infrastructure, about 90% is concentrated in two countries: China and the United States.

Both powers have taken steps to secure the energy required to develop artificial intelligence, albeit through different approaches. While the United States has reduced investments and proposals related to the energy transition, China is seeking to reduce its dependence on fossil fuels to achieve its climate goals and limit its exposure to external suppliers.

Beijing’s strategy to achieve energy self-sufficiency stands out in this context. As the world’s largest energy consumer, the country is exploring technologies ranging from the use of materials such as thorium and bismuth to the accelerating expansion of renewable energies and nuclear power generation.

Last year, a new energy law came into effect, which prioritizes the development of renewable sources and hydrogen in order to reduce dependence on fossil fuels and enhance national energy security. The legislation also requires authorities to set minimum targets for consumption from clean sources.

In parallel, the country launched a deep reform of its electricity market. From June 2025, all solar and wind energy must be traded through market mechanisms or auctions, gradually eliminating old feed-in tariff schemes. These measures, accompanied by financial incentives and the phasing out of outdated subsidies, aim to promote investment in clean technologies and improve the efficiency of the energy system.

China’s energy transition is not just about environmental considerations. It is also part of a long-term economic and geopolitical strategy aimed at strengthening its technological and industrial independence. In this context, the launch of the United Development Company represents an important step forward that strengthens the country’s position vis-à-vis the United States and the rest of the world in the race to build the infrastructure that will support the next generation of artificial intelligence and other technological developments.

This article originally appeared on WIRED in Spanish It was translated from Spanish.