Why Subsea Data Centers Face Challenges in Taking Off? 

“The concept of subsea data centers is gaining attention, with China claiming the world’s first commercial subsea data center. China Telecom and Tencent are reported as customers for the facility, which features a core module weighing 1,300 tonnes deployed in 35-meter deep waters off Lingshui on Hainan Island. The project, initiated by Beijing Highlander Digital Technology and funded as a demonstration by Hainan Free Trade Port, aims to expand to 100 modules and enhance energy efficiency by 40%-60% compared to terrestrial counterparts. 

While the potential for energy savings, cost efficiency, and reduced latency in subsea data centers has been explored, Microsoft’s Project Natick stands out as a notable initiative in this space. Microsoft conducted a two-year deployment off the Orkney Islands, declaring underwater sites reliable, practical, and sustainable. However, despite positive outcomes, there is no indication that Microsoft has deployed subsea data centers since the last test in 2020. 

The challenges associated with subsea data centers include connectivity and security concerns. Establishing fiber cable connections for numerous edge centers involves significant cost, complexity, and regulatory approvals. Security considerations, especially in the current geopolitical climate, where subsea infrastructure is vulnerable to potential threats, present additional barriers to widespread adoption. As a result, the promising concept of subsea data centers may face practical challenges hindering its broader commercial implementation.” 

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