China’s HiCloud Pioneers Offshore Wind-Powered Underwater Data Center, Aims for 500MW Expansion

China's HiCloud Pioneers Offshore Wind-Powered Underwater Da - Offshore Wind-Powered Data Center Launched Chinese firm HiCl

Offshore Wind-Powered Data Center Launched

Chinese firm HiCloud has launched a demonstration underwater data center that sources indicate is directly connected to an offshore wind farm. According to reports, the project, located off the coast of Shanghai near the Lingang Special Area, was inaugurated recently, with plans to scale subsea deployments to 500MW. The demonstration site is said to offer 2.3MW of data center capacity, though the exact location of the wind turbines remains undisclosed.

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Strategic Partnerships and Expansion Plans

At the launch event, HiCloud and industrial partners, including Shenergy Group, Shanghai Telecom, Shanghai INESA, and CCCC Third Harbor Engineering Company, signed a cooperation agreement for a 500MW underwater data center. Analysts suggest this collaboration aims to support national strategies and establish Shanghai as a global hub for technological innovation. However, the report states that specific locations and construction timelines for the larger project have not been revealed.

Background and Global Context

HiCloud, a division of Highlander, previously developed what it describes as the world’s first underwater data center modules off Hainan Province. The company began experiments in 2021, followed by its first commercial deployment in 2023, and added a module with 400 high-performance servers in February 2025. Other entities, such as Microsoft with its Project Natick, have explored similar concepts but reportedly abandoned undersea efforts last year. Start-ups like Subsea Cloud and NetworkOcean are also reportedly planning underwater data centers, indicating growing interest in this emerging field.

Implications for Digital and Marine Economies

This initiative represents a major step in integrating the digital economy with new energy and marine resources, according to the company’s statements. By leveraging offshore wind power, HiCloud aims to reduce environmental impact and enhance efficiency. The report highlights that this approach could set a precedent for sustainable data center operations globally, though challenges in scaling and implementation remain to be addressed.

References & Further Reading

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