Updated: August 2026
Author: Xvox Labs Team

Introduction

You use the internet every day. You watch videos, send messages, and use apps. All of this data is stored and processed somewhere. That "somewhere" is called a data center.

Data centers are huge buildings full of computers. They store our photos, videos, emails, and everything else we do online. But there is a problem. These buildings use a lot of electricity. They also use a lot of water to stay cool.

Now, some companies are trying something new. They are putting data centers under the sea. This sounds strange, but there are good reasons for it. Let's understand this in simple words.

Why Are Data Centers Being Put Under the Sea?

Computers get hot when they work. Just like your phone gets warm when you use it too much, data center computers get very hot too. To stop them from overheating, companies need to cool them down.

On land, this cooling needs a lot of machines. These machines use a lot of electricity and water.

Under the sea, things are different. The seawater around the data center is already cool. This cool water can take away the heat naturally. Companies don't need big cooling machines anymore. This saves a lot of electricity and water.

Here are the main reasons companies are doing this:

1. Less water is needed
The sea already has cool water all around. No need to pump in fresh water for cooling.

2. Less land is needed
Data centers on land need a lot of space. Space near cities is expensive. Under the sea, there is no land cost.

3. Less electricity is needed
Cooling on land uses a lot of power. Cooling in the sea uses much less power because the water does the job naturally.

4. Closer to cities
More than half of the world's people live near the coast. Putting data centers in the sea near these cities means faster internet for millions of people.

How Does It Actually Work?

It's simpler than you might think.

1. Computers (servers) are placed inside a strong, sealed metal container. Think of it like a submarine without people inside.

2. This container is placed under the water, usually 30 to 35 meters deep.

3. The heat from the computers passes through the metal walls into the cold seawater outside.

4. The seawater carries the heat away naturally. No need for machines to blow cold air.

5. Power comes from cables connected to land, and many new projects use wind power from the ocean too.

Since no people are inside, everything is controlled and watched from far away using computers and cameras.

How Much Water Do Data Centers Actually Use?

This is one of the biggest reasons companies are exploring the sea. Regular land-based data centers use a huge amount of water. Let's look at some simple numbers.

• A medium-sized data center can use up to 110 million gallons of water every year. That is about the same water used by 1,000 homes in a year.

• A large data center can use up to 5 million gallons of water in just one day. That is enough water for a small town of 10,000 to 50,000 people.

• In the United States, all data centers together used about 17.4 billion gallons of water in 2023. This number is expected to grow to 38 to 73 billion gallons by 2028 because of the huge rise in AI use.

• On very hot summer days, some data centers can use 6 to 10 times more water than they normally do.

This is a real problem, especially in places that don't have much water to begin with, like parts of the USA, or dry regions in other countries.

Now here's the important part: underwater data centers don't need this fresh water at all. They use the seawater around them for cooling instead. This means they save huge amounts of fresh water that could be used for drinking, farming, and daily life.

Some companies are also working on better cooling for land-based data centers, so they use less water too, but underwater data centers avoid this problem completely.

How Many Data Centers Are There in the World?

As of 2026, there are around 11,800 to 12,000 data centers operating around the world. This number keeps growing every year because of cloud computing and AI.

Here is how they are spread out:

Out of all these thousands of data centers, only a very small number are actually underwater. Right now, the underwater ones are mostly in China. It is still a very new idea, and most data centers in the world are still built on land.

Which Companies Manage Data Centers?

There are two types of companies involved:

1. Big Global Tech Companies

These companies run huge numbers of data centers around the world for cloud computing and AI:

• Amazon (AWS) – Has the most data center locations in the world

• Microsoft (Azure) – Runs data centers in almost every major country

• Google Cloud – Focused heavily on AI and search infrastructure

• Meta (Facebook, Instagram) – Builds huge data centers for social media and AI

• Equinix – Runs data centers for many other companies (over 260 data centers worldwide)

2. Companies Building Underwater Data Centers

Very few companies are working specifically on underwater or ocean-based data centers:

• HiCloud (Shanghai Hailanyun Technology) – Built China's underwater data center near Shanghai, which is now fully working

• Beijing Highlander Digital Technology – Built a large underwater data center cluster near Hainan Island, China

• Microsoft – Did early research on this idea with a project called Project Natick, which proved the concept works

• Panthalassa – A newer company (backed by investor Peter Thiel) building floating computers powered by ocean waves, mainly for AI

Is There Anything Like This in India?

Right now, India does not have any working underwater data center. All of India's data centers are currently built on land.

However, India's data center industry overall is growing very fast. Here is what's happening in India:

• India currently has around 150 to 200 data centers, ranking around 14th in the world.

• India's data center capacity was about 917 megawatts in 2024, and it is expected to reach 1.7 gigawatts by the end of 2026. That's almost double in just two years.

• Big Indian and global companies running data centers in India include:

  • Sify Technologies – one of India's oldest and largest data center companies

  • CtrlS Datacenters

  • STT GDC (ST Telemedia Global Data Centres) – has around 28 data centers across 10 Indian cities

  • AdaniConneX – a joint venture between Adani and EdgeConneX

  • Yotta Data Services – runs one of India's biggest data centers in Navi Mumbai

  • L&T Cloudfiniti – part of Larsen & Toubro, expanding fast in Mumbai and Bengaluru

  • NTT DATA, Equinix, Nxtra by Airtel – all have large operations in India

One big project worth mentioning: AdaniConneX and Google are building a huge AI data center campus in Visakhapatnam (Vizag), Andhra Pradesh. This project is worth around $15 billion and will be built over several years. It will also use a subsea cable network to connect faster with the rest of the world, though this is different from an underwater data center — the computers themselves will still be on land.

So while India hasn't built an underwater data center yet, the idea is being talked about in the industry, and India's location — with a very long coastline — means it could be a strong candidate for this kind of project in the future.

Simple Comparison: Land vs Underwater Data Centers

Are There Any Downsides?

Yes, this technology is not perfect. Some real concerns include:

• Hard to repair: If something breaks, workers can't just walk in and fix it. They need special ships and equipment.

• Effect on sea life: Even though the heat released is small, scientists are still studying how it might affect fish and other sea creatures nearby.

• Still very new: Only a few of these exist today. We don't yet know how well they will work after many years of use.

Frequently Asked Questions

Q: Why do data centers need so much water?

A: Computers get hot, and water is used to cool them down, just like a fan cools a room. Bigger data centers with more computers need more water to stay cool.

Q: Do underwater data centers use any water at all?

A: They use seawater, not fresh drinking water. This is the biggest benefit. They don't take water away from homes, farms, or cities.

Q: How many underwater data centers exist today?

A: Only a handful exist in the world right now, mostly in China. It is still a very new and rare technology compared to the thousands of normal land-based data centers.

Q: Does India have any underwater data centers?

A: No, not yet. India's data centers are all currently on land. But India's data center industry is growing quickly, and with its long coastline, this could become an option in the future.

Q: Is underwater data center technology safe?

A: So far, tests and early projects (like Microsoft's Project Natick and China's operating facilities) show it works well and is even more reliable in some ways. But it is still a new technology, so long-term results are still being studied.

Key Takeaways

✓ Data centers get hot, and cooling them normally uses a lot of water and electricity

✓ Underwater data centers use cool seawater instead of fresh water, saving huge amounts of water

✓ A large land-based data center can use up to 5 million gallons of water in a single day

✓ There are around 11,800 to 12,000 data centers in the world today, but only a few are underwater

✓ Big companies like Amazon, Microsoft, and Google run most of the world's data centers

✓ China currently leads in underwater data center technology through companies like HiCloud

✓ India does not have an underwater data center yet, but its data center industry is growing very fast on land

Where Xvox Labs Can Help

At Xvox Labs, we help businesses understand new technology trends like this in simple, clear terms. If you want to know how new data center and AI trends might affect your business, we're happy to help explain it in a way that makes sense.

Contact us if you have questions about AI, automation, or how new technology trends might affect your business.