BIG Opportunity For India As China Creates History Beneath The Ocean

New Delhi: In this era of Artificial Intelligence (AI) and modern computing, the demand for data centers is skyrocketing. While you may have seen massive data centers on land until now, China has taken the tech world into the depths of the ocean. China has launched the world's first underwater data center near the coast of Shanghai, powered entirely by a wind farm. An investment of approximately $238 million (around ₹2,200 crore) has been made in this unique project. This data center presents both a significant lesson and an opportunity for India.

Where is the data center situated? 

Named 'Shanghai Lingang,' this 24-megawatt (MW) capacity data center is situated 16 km off the Shanghai coast and 10 meters below the sea surface. It was developed jointly by HighCloud Technology and the state-owned China Communications Construction. 

100% savings on water and land? 

Whether in India or elsewhere, traditional land-based data centers face two major issues: high electricity consumption and the wastage of fresh water. Servers generate immense heat during continuous operation. Keeping them cool requires circulating vast amounts of water through pipes, a process that consumes 25% to 40% of the total electricity just for cooling.
According to a United Nations (UN) report, global data centers are projected to consume 9.3 trillion liters of water by 2030. This amount is equivalent to the drinking water needs of 1.3 billion people—roughly the entire population of India. In this context, China's underwater model represents a major revolution. 

Is China's model a marvel?

Since the facility is submerged in the cold ocean water, it requires no additional water for cooling, thereby completely eliminating the wastage of fresh water. It consumes 22.8% less electricity compared to land-based data centers. This project utilizes over 95% eco-friendly (wind energy) power. Being located underwater has reduced land usage by more than 90%.

Has China Surpassed the US? 

In terms of data centers, 90% of the facilities across the world's 32 major nations are concentrated in just China and the US. However, while most US data centers still run on fuels like gas and coal, China is rapidly shifting towards green energy.

Major Investments by Ambani and Adani? 

Work on building data centers is also proceeding rapidly in India. Ambani and Adani are investing over $200 billion in this sector. Mukesh Ambani’s Reliance Group is constructing massive data centers powered entirely by green energy. Meanwhile, Gautam Adani’s Adani Enterprises has pledged to invest $100 billion by 2035 in data centers powered by renewable energy. 

What This Means for India? 

India is currently the world's fastest-growing digital market. Demand for AI and data centers is surging here, requiring vast amounts of land, electricity, and water in cities like Mumbai, Chennai, Noida, and Bengaluru. Given India's coastline of over 7,500 kilometers, constructing similar underwater data centers—perhaps off the coasts of Mumbai, Chennai, or Visakhapatnam—could be an excellent future option. This would lead to significant savings of both precious land and drinking water.