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China just buried the internet underground. China built a 1,300-ton data cabin submerged under the sea, housing 24 server racks running 400 to 500 servers cooled entirely by the ocean. No air conditioning or cooling towers sucking up millions of gallons of water, just cold seawater doing the work for free. Standard data centers spend up to 50 percent of their total energy just on cooling and this one cuts that number to below 10 percent. And this is just the beginning, China’s plan calls for 100 of these underwater cabins. Meanwhile, a second facility just launched off Shanghai, wind-powered for $226 million which targets a PUE of 1.15 almost perfect energy efficiency. Now here is the part that stings, the US invented this concept. Microsoft launched Project Natick back in 2013, they sank 855 servers off the coast of Scotland. The experiment worked beautifully and only 6 of 855 servers failed compared to 8 out of 135 in a land-based center. Then Microsoft shut the whole project down and in 2024, the head of Microsoft’s cloud division said: “I’m not building subsea data centers anywhere in the world.” America proved it worked while China actually built it. This matters beyond energy efficiency, the US is already hitting an energy bottleneck. New AI data centers need more than a gigawatt of electricity enough to power a small city and there is not enough power coming online fast enough. Meanwhile, China does not have that problem, it has a coordinated national energy buildout, offshore wind farms, and now data centers that barely need power for cooling.
