China Opens World’s First Underwater Wind Farm

China has been the first country in the world to use underwater data centeror UDC, operated by the wind. Located near the coast of Shanghai, the site represents a major advance in the country’s energy strategy in the face of rapid growth in smart manufacturing, reducing dependence on fossil fuels, and reducing the environmental impact of its technology.

This is the result of the cooperation between the private company HiCloud Technology and the government of China Communications Construction, which included an investment of 1.6 billion yuan, equivalent to $ 236 million.

With an initial capacity of 24 megawatts, the plant is submerged 10 meters deep in the Lin-gang Special Zone, within the China Pilot Free Trade Zone in Shanghai. The facility allows seawater to be used as a natural cooling system, reducing the energy used to cool the building by up to 10 percent.

This solves one of the biggest energy-consumption problems of conventional data systems, where air conditioning systems typically consume 40 to 50 percent of the total electricity required to operate.

UDC temperature is directly expressed in power consumption, or PUE. This metric is used by companies to evaluate data center efficiency; 1.0 represents the highest level of information technology. In its first phase, the Lin-gang facility was designed to achieve a PUE of no more than 1.15, a figure that is considered modern within the industry.

Under the same cooling principle, HiCloud opened the world’s first underwater trading center in 2023 in Hainan, an island in southern China. However, the Shanghai building is notable as the first to use wind energy.

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

The opening of these challenges is an important step in China’s efforts to optimize energy use through renewable sources and, at the same time, strengthen its leadership in computing related to AI development.

A report published recently by the UN shows that only 32 countries have data processing centers that have the ability to create intelligence. Of the world’s development, about 90 percent is concentrated in two countries: China and the United States.

All these powers have taken steps to protect the power required by AI development, albeit through different means. While the United States has reduced funding and proposals for energy transition, China wants to reduce its dependence on fossil fuels to meet its climate goals and reduce risks for exporters.

Beijing’s strategy of self-sufficiency is well known in this regard. As the world’s largest energy user, the country is exploring technologies ranging from the use of materials such as thorium and bismuth to the rapid expansion of renewable energy and nuclear power generation.

Last year, a new energy law went into effect, which prioritizes the development of renewable energy sources and hydrogen to reduce dependence on fossil fuels and strengthen national security. The law also forces governments to set minimum standards for sanitation use.

Similarly, the country initiated a major reform of its electricity market. By June 2025, all solar and wind power must be sold through a market or auction, phasing out old ways of generating revenue. These measures, followed by financial incentives and the end of subsidies for those who have already received them, are aimed at encouraging investment in clean technology and improving energy efficiency.

China’s energy transition is not only driven by environmental considerations. It is also part of a long-term economic and geopolitical strategy aimed at promoting technological and industrial independence. In this context, the establishment of the UDC represents an important step that encourages the United States and the rest of the world in the race to build infrastructure that will support the next generation of artificial intelligence and other modern technologies.

This article appeared first WIRED in Spanish and translated from Spanish.