Subsea Digital Frontiers: HiCloud’s Wind-Powered Underwater Data Center Initiative

Harnessing Ocean Depths for Sustainable Computing

Chinese technology firm HiCloud has launched a groundbreaking demonstration project that merges offshore wind energy with underwater data center infrastructure, marking a significant advancement in sustainable digital infrastructure. The company, a division of Highlander, has announced ambitious plans to scale its subsea deployments to an impressive 500MW capacity, signaling a major commitment to marine-based digital solutions.

Strategic Location and Initial Deployment

The demonstration site, located near Shanghai’s Lingang Special Area within the China (Shanghai) Pilot Free Trade Zone, represents the first phase of HiCloud’s comprehensive underwater data center strategy. While previous reports indicated the initial deployment offers approximately 2.3MW of data center capacity, the company has maintained discretion regarding the exact location of the powering wind turbines. This strategic positioning aligns with Shanghai’s broader initiative to establish itself as a global technological innovation hub while supporting national economic strategies.

Collaborative Expansion Towards 500MW Vision

At a recent inauguration event, HiCloud formalized partnerships with industry leaders including Shenergy Group, Shanghai Telecom, Shanghai INESA, and CCCC Third Harbor Engineering Company. The collaboration agreement outlines a shared commitment to develop a massive 500MW underwater data center facility. While specific timelines and the project location remain undisclosed, this partnership represents one of the most ambitious underwater digital infrastructure projects globally.

Proven Track Record in Underwater Data Centers

HiCloud’s parent company Highlander brings substantial experience to this venture, having previously developed what it describes as the world’s first underwater data center modules off Hainan Province. The company’s journey in subsea data centers began with experimental deployments in 2021, followed by its first commercial implementation in 2023. Most recently, in February 2025, HiCloud expanded its Hainan underwater data center cluster with an additional module housing 400 high-performance servers, demonstrating continuous advancement in subsea digital infrastructure.

Global Context and Industry Landscape

The concept of underwater data centers isn’t entirely novel, with Microsoft pioneering the approach through its Project Natick initiative launched in 2015 off the Pacific coast of the United States. The technology giant followed with another pilot project in the North Sea near Orkney in 2018. However, industry confirmation emerged last year that Microsoft had discontinued its underwater data center endeavors, creating an opportunity for specialized firms like HiCloud to advance the technology.

Currently, the underwater data center market includes emerging players such as Subsea Cloud and NetworkOcean, though HiCloud’s direct integration with offshore wind power represents a distinctive approach to sustainable digital infrastructure.

Environmental and Economic Implications

This initiative represents a significant convergence of three critical economic sectors: digital technology, renewable energy, and marine economy. By leveraging natural ocean cooling and renewable wind power, HiCloud’s approach addresses two major challenges facing traditional data centers: substantial energy consumption and cooling requirements. The company emphasized on professional networks that this project “marks a significant milestone for the Lingang Special Area in deeply integrating the digital economy, new energy, and the marine economy.”

Future Prospects and Industry Impact

As digital infrastructure demands continue to escalate globally, HiCloud’s scalable approach to underwater data centers powered by renewable energy presents a compelling solution to sustainability challenges in the technology sector. The successful implementation of the 500MW project could establish new standards for environmentally conscious digital infrastructure while demonstrating China’s growing leadership in innovative technological solutions., as as previously reported

The integration of direct offshore wind power with underwater data centers not only reduces transmission losses but also creates a self-contained ecosystem where renewable energy generation and digital infrastructure coexist harmoniously with the marine environment. This approach may well define the next generation of sustainable data center design globally.

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