World

China Launches World’s First Underwater Data Center: How It Will Transform the Blue Economy

China launched the world’s first underwater data center in Hainan, using seawater for cooling to cut costs.

October 7, 2025, 8:31 AM

Submerged data center modules in a circular arrangement on the ocean floor, connected by glowing circuits, with Chinese text.

This AI-generated image illustrates China’s innovative concept for an underwater data center using submerged white modules arranged in a circle. By MDL.

Executive Summary

China has inaugurated the world’s first commercial underwater data center in Hainan province, aiming to boost its “blue economy” and attract foreign investment.

The facility utilizes seawater for cooling, significantly reducing energy consumption and operational costs compared to conventional land-based data centers.

This project is a key component of Hainan’s fourteenth five-year plan, with ambitions to develop a subsea data center featuring 100 data cabins as part of China’s broader strategy for marine and digital innovation.

The Story So Far

China is strategically developing its “blue economy” and attracting foreign investment in Hainan, its largest pilot free-trade zone, as part of its fourteenth five-year plan. The inauguration of the world’s first commercial underwater data center is a key component of this strategy, leveraging technological innovation to use seawater for cooling, thereby significantly reducing energy consumption and operational costs compared to land-based facilities, and aligning with both high-tech industrial growth and environmental sustainability goals.

Why This Matters

China’s inauguration of the world’s first commercial underwater data center signifies a major leap in sustainable digital infrastructure, utilizing seawater for cooling to drastically reduce energy consumption and operational costs compared to traditional land-based facilities. This pioneering project is central to bolstering China’s “blue economy” and attracting foreign investment in Hainan’s free-trade zone, strategically positioning the nation at the forefront of innovative and environmentally conscious data management.

Who Thinks What?

China and Hainan province view the underwater data center as a strategic initiative to bolster the “blue economy,” attract foreign investment, and advance new technologies within the nation’s largest pilot free-trade zone.

Pu Ding, a project manager at Shenzhen HiCloud Data Centre Technology, emphasizes the environmental and economic advantages of the underwater data centers, citing reduced energy consumption for cooling and lower operational costs compared to land-based facilities.

China has inaugurated the world’s first commercial underwater data center in Hainan province, a move intended to bolster its “blue economy” and attract foreign investment within the nation’s largest pilot free-trade zone. The facility, now operational after its initial construction phase in Lingshui county, utilizes seawater for cooling, aiming to significantly reduce energy consumption and operational costs compared to conventional land-based data centers.

Technological Innovation and Environmental Benefits

The underwater data center’s servers are designed to manage various digital services, ranging from restaurant recommendations to travel information. These servers are housed within a 1,300-tonne underwater data cabin, submerged 35 meters (114.8 feet) below the surface.

Pu Ding, a project manager at Shenzhen HiCloud Data Centre Technology, emphasized the environmental and economic advantages. “We put the entire data cabin in the deep sea because seawater can help cool down the temperature,” Ding told the Chinese media outlet Financial News. “Compared to land-based data centers, data centers under the sea can reduce energy consumption needed for cooling, helping to lower operational costs.”

Strategic Development in Hainan

Each data cabin contains 24 server racks, capable of hosting between 400 and 500 servers. This project is a central component of Hainan’s fourteenth five-year plan, which outlines ambitions to develop a subsea data center featuring 100 data cabins.

The initiative is integral to an integrated industrial estate focused on advancing new technologies for the blue economy, reflecting China’s broader strategy to innovate in marine industries and digital infrastructure.

Looking Ahead

The successful deployment of this commercial underwater data center positions China at the forefront of a novel approach to data management, combining technological innovation with environmental sustainability goals. This development aligns with Hainan’s strategic push to enhance its economic profile through high-tech and marine-based industries.