China is advancing with its strategy to deploy underwater data centers, anticipating energy savings due to natural oceanic cooling off the coast near Shanghai.

Highlander Digital Technology, based in Beijing, plans to submerge new data pods soon after a successful trial near Hainan Island. Serving clients like China Telecom and a government AI firm, this effort aligns with China’s push to reduce data center carbon footprints.

Highlander VP Yang Ye highlights that ocean currents naturally dissipate heat, reducing reliance on land-based cooling. The new facility expects to source 95% of its energy from nearby wind farms.

Previously, Microsoft’s Project Natick explored underwater centers, reporting lower equipment failure rates but opting against commercial deployment, likely due to rapid tech changes and easier maintenance on land.

Despite vulnerabilities to sound wave attacks, other companies like Subsea Cloud continue trials, offering underwater solutions as efficient, sustainable alternatives.