China has set a new benchmark in AI infrastructure by operating the world’s first underwater data center, significantly advancing its technological ambitions.
What Happened
China initiated operations of an underwater AI data center near Shanghai, marking a substantial step in their AI infrastructure development. The facility, which is submerged approximately 35 meters below the surface, houses around 2,000 servers within sealed units crafted from submarine-grade steel.
The Context
This underwater data center utilizes seawater for natural cooling, aiming to reduce energy consumption significantly. With a projected cost of $226 million and powered by offshore wind energy, this project began operations in June 2025 and is now fully operational. China's move to deploy ocean-based computing follows a broader trend in AI infrastructure enhancement amidst halted efforts by the U.S. in similar capacities.
The Facts
- China operates the first underwater AI data center near Shanghai.
- The facility can handle over 7,000 AI queries per second with reduced energy consumption for cooling estimated at up to 90%.
- The project reportedly started operations in June 2025, but its long-term success and competitive standing against global counterparts remain unconfirmed.
Why It Matters
This initiative not only represents a push in technological advancements but also underscores the competitive landscape of AI infrastructure, with China positioning itself ahead as the U.S. curtails similar endeavors. The focus on underwater operations could reshape the energy dynamics and efficiency benchmarks for the future of AI computing.
What Comes Next
- Observe the operational performance and energy efficiency metrics released from the data center.
- How will global competitors respond to China's underwater data center initiative?
- Future investments in underwater AI data centers from other nations would indicate shifts in operational strategies and pressure points in the tech sector.
The Bottom Line
China's pioneering underwater data center represents a significant leap in AI infrastructure, although its long-term viability and competitive effects on the global market remain to be observed.
Source reporting: new.
This report includes aggregated reporting and explicit analysis.
DECLASSIFIED SOURCE: Operative Telegram Feed
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