Regulators Oblivious to Suggested Underwater Data Center Initiative

Regulators Oblivious to Suggested Underwater Data Center Initiative

Regulators Oblivious to Suggested Underwater Data Center Initiative


### Underwater Data Centers: A New Challenge in AI Infrastructure or Ecological Threat?

With the surge in the need for computing power, especially due to the emergence of generative AI, data centers are encountering intensified scrutiny regarding their ecological effects. These facilities, which support everything from cloud storage to AI systems, utilize enormous quantities of electricity and water for cooling. In response, several entrepreneurs are investigating innovative methods to diminish the environmental impact of data centers. One proposed approach is relocating data centers underwater, where the inherent cooling characteristics of seawater may lessen the dependence on energy-draining air conditioning systems.

This notion isn’t entirely unprecedented, but it is attracting renewed interest as startups like **NetworkOcean** and major tech firms such as **Microsoft** test submerged data centers. Nonetheless, while the concept appears promising for energy reduction, it concurrently poses notable environmental risks, particularly concerning the potential repercussions for marine ecosystems.

### The NetworkOcean Trial

NetworkOcean, a startup initiated by Sam Mendel and Eric Kim, is set to assess the practicality of underwater data centers by submerging a small capsule filled with **GPU servers** in San Francisco Bay. The company, which emerged from startup accelerator **Y Combinator** in August 2023, intends to carry out its initial test within a month of the announcement. According to Mendel, the objective is to establish a more efficient and sustainable computing infrastructure that can cater to the increasing needs of AI technologies.

The idea behind submerged data centers is relatively straightforward: by encasing servers in a sealed capsule and placing it underwater, the surrounding seawater can automatically cool the devices. This diminishes the necessity for conventional air conditioning systems, a significant contributor to energy usage in terrestrial data centers. Furthermore, the founders suggest that relocating data centers offshore could help mitigate ocean temperature rise by drawing less electricity and leveraging the ocean’s cooling capabilities.

### Ecological Concerns and Regulatory Challenges

Although the notion of underwater data centers seems appealing, it has ignited apprehensions among environmental scientists and regulatory bodies. The San Francisco Bay, where NetworkOcean plans to perform its experiment, is a delicate ecosystem. Even minor disruptions, such as slight increases in water temperature, could have major ramifications, including the potential triggering of **toxic algae blooms** and adverse effects on local wildlife.

Various California and U.S. agencies, such as the **Bay Conservation and Development Commission (BCDC)** and the **San Francisco Regional Water Quality Control Board**, have raised alarms regarding the project. Public records indicate that NetworkOcean has yet to obtain the necessary permits for its underwater trial. This has prompted warnings from regulators that the company may face significant penalties if it advances without proper authorization.

This scenario recalls a past incident involving **Microsoft** in 2015, when the tech giant executed an unpermitted trial of its underwater data center, known as **Project Natick**, in San Luis Obispo Bay. Although the trial did not result in obvious environmental damage, Microsoft later received a notification from the California Coastal Commission for breaching state regulations. The company has since executed further trials off the coast of Scotland, where it acquired the requisite permits.

### The Potential and Challenges of Underwater Data Centers

The concept of underwater data centers certainly holds potential. By harnessing the natural cooling abilities of water, these centers could drastically lower the energy needed to maintain server temperatures, rendering them more environmentally sustainable than their land-based equivalents. Indeed, Microsoft’s findings from **Project Natick** indicated that underwater data centers could be “logistically, environmentally, and economically viable.”

Nevertheless, the long-term feasibility of underwater data centers remains unclear. **Tony Harvey**, a senior director at the consultancy **Gartner**, highlights that while these submerged facilities may experience less heat stress, they could still encounter various technical obstacles. For instance, maintenance and repairs could prove more complicated and expensive when equipment is underwater. Moreover, the possible ecological impact, especially in sensitive environments like San Francisco Bay, cannot be overlooked.

### The Regulatory Environment

One of the primary hurdles encountered by underwater data centers is the intricate regulatory framework. In the context of San Francisco Bay, any venture that may escalate water temperatures or disturb marine habitats would necessitate evaluation by numerous regulatory entities, including the **U.S. Army Corps of Engineers**, the **BCDC**, and the **Water Quality Control Board**. These organizations are responsible for ensuring that any undertaking in the bay delivers a clear benefit to the public and does not harm the ecosystem.

For instance, not long ago, a proposal to use San Francisco Bay water to cool a land-based data center was dismissed after public concerns surfaced concerning possible rises in water temperatures. Even a short-term project, like NetworkOcean’s proposed trial, would require approval from various agencies, including those tasked with safeguarding endangered species and managing water quality.

### The Outlook for Underwater Data Centers

In spite of the regulatory and environmental obstacles, the idea of underwater data centers