The global race to build energy-efficient data centres is moving beneath the ocean, and China is emerging as a dominant player. A new patent analysis suggests that China accounts for approximately 80% of the world’s underwater data centre patents, highlighting a major shift in technological leadership towards Asia.
The development comes as artificial intelligence, cloud computing and digital services push electricity consumption higher, forcing technology companies to explore alternatives to conventional land-based data centres.
Unlike traditional facilities that depend heavily on electricity-powered cooling systems, underwater data centres use the surrounding seawater to remove heat from computer servers. This could reduce cooling costs, limit freshwater consumption and make better use of coastal infrastructure.
Why Are Data Centres Moving Underwater?
Underwater facilities typically place servers inside sealed, pressure-resistant modules anchored to the seabed. The ocean provides a continuous cooling source, reducing dependence on conventional chillers and freshwater-based cooling systems.
This is particularly relevant as AI infrastructure requires increasingly powerful processors that generate substantial heat during operation.
China Emerges as the Patent Leader
The study, published on November 6 in the Chinese-language Journal of Marine Information Technology and Application, examined 168 global underwater data centre patents filed between 2006 and June 2026.
China accounts for approximately 80% of the patents analysed, establishing a significant lead in this emerging engineering sector.
Other countries trail considerably:
- South Korea: 17 patents, mainly involving underwater deployment systems and structural equipment.
- United States: 8 patents, covering system architecture, power supply and local data processing.
- European countries: 6 patents, focusing on subsea power systems, production control and automated maintenance.
The research identifies three development phases. Before 2014, innovation concentrated on pressure-resistant structures and underwater foundations. Between 2015 and 2020, engineers focused on thermal management, power supply and operational reliability.
Since 2021, development has increasingly shifted towards integrated systems, modular construction, automated maintenance and commercial deployment.
Microsoft’s Project Natick Proved the Concept
China’s growing patent advantage builds on earlier experiments by Western technology companies.
Microsoft’s Project Natick remains one of the most important demonstrations of underwater computing. In 2018, the company deployed a sealed data centre containing 855 servers off Scotland’s Orkney Islands.
After approximately two years underwater, Microsoft reported that its servers experienced just one-eighth the failure rate of a comparable land-based control group.
However, technical success did not automatically translate into commercial adoption. Microsoft discontinued Project Natick, confirming in 2024 that it was no longer actively building subsea data centres.
Can Underwater Data Centres Become Mainstream?
Despite their cooling advantages, subsea facilities face significant challenges. Saltwater corrosion, extreme underwater pressure, submarine cable connectivity, deployment expenses and difficult hardware replacement remain major engineering concerns.
Environmental impact is another unanswered question. Continuous heat discharge could affect surrounding marine ecosystems, making long-term ecological monitoring essential.
The next phase could involve combining underwater computing infrastructure with offshore wind farms and other renewable energy sources.
China’s patent leadership does not necessarily mean it already dominates the global underwater data centre market. However, its growing engineering expertise suggests that the country wants to play a major role in building the next generation of computing infrastructure.
The bigger race may not simply be about building more powerful AI chips, but finding sustainable places and energy sources to run them.
