Underwater Data Center Market Report 2026

The underwater data center market size has grown rapidly in recent years. It will grow from $1.11 billion in 2025 to $1.33 billion in 2026 at a compound annual growth rate (CAGR) of 19.9%. The growth in the historic period can be attributed to increasing demand for sustainable data center solutions, rising energy costs, adoption of cloud computing infrastructure, growth of data storage requirements, expansion of telecommunications networks.

The underwater data center market size is expected to see exponential growth in the next few years. It will grow to $2.78 billion by 2030 at a compound annual growth rate (CAGR) of 20.2%. The growth in the forecast period can be attributed to growing deployment of underwater data centers globally, rising adoption of liquid immersion cooling for efficiency, increasing demand for edge computing near coastal areas, expansion of ai and ml processing underwater, growing focus on reducing carbon footprint of data infrastructure. Major trends in the forecast period include increasing adoption of water and liquid immersion cooling techniques, rising deployment of shallow and deep water data centers, growing integration of energy management and infrastructure monitoring software, expansion of edge computing and ai/ml processing applications, rising focus on remote operations and managed services.

The surging data traffic is anticipated to propel the growth of the underwater data center market going forward. Data traffic refers to the volume of digital data transmitted across networks and the internet within a given period, encompassing activities such as streaming, cloud computing, file sharing, and real-time communications. The surging data traffic, driven by the rapid proliferation of connected devices and widespread adoption of data-intensive applications such as video streaming, artificial intelligence, and cloud services, is placing unprecedented strain on existing land-based infrastructure. The increasing volume of data being transmitted and processed globally intensifies the demand for large-scale, energy-efficient data center capacity, making underwater facilities an increasingly viable solution due to their natural cooling advantages and proximity to coastal population centers. For instance, in June 2024, according to a report by Ericsson, a Sweden-based telecommunications company, from Q4 2023 to Q1 2024, mobile network data traffic experienced quarter-on-quarter growth of approximately 6 percent. The total global mobile network data traffic for the month reached 145 exabytes (EB). Therefore, surging data traffic is propelling the growth of the underwater data center market.

Key companies operating in the underwater data center market are focusing on developing advanced solutions, such as seawater-cooled subsea modules, to enhance energy efficiency, improve thermal management, and support high-density computing beneath the ocean surface. Seawater-cooled subsea modules refer to pressure-resistant, sealed data center units deployed underwater that utilize surrounding seawater as a natural heat sink, integrating advanced heat exchangers and renewable energy connectivity to maintain optimal server temperatures while reducing dependence on traditional air-conditioning systems. For example, in October 2025, HiCloud Technology Co., Ltd., a China-based technology company, launched a wind-powered underwater data center, representing a seawater-cooled subsea module. Designed to support hyperscale computing operators and cloud service providers, the solution combines offshore wind energy with natural seawater cooling, incorporates sealed steel enclosures suitable for deep-sea deployment, and achieves a targeted power usage effectiveness (PUE) below 1.15 through optimized thermal exchange systems, thereby contributing to sustainable, high-performance, and environmentally efficient underwater computing infrastructure.

In May 2023, Atlas Technology, a Singapore-based Web3 infrastructure service provider, partnered with Shenzhen Hicloud Data Center Technology to accelerate the commercialization of sustainable underwater computing infrastructure. Through this partnership, Atlas Technology and Shenzhen Hicloud Data Center Technology aim to propel advancements in subsea data center deployment, contributing to and supporting the promotion of energy-efficient, renewable-powered digital infrastructure to meet next-generation offshore computing requirements. Shenzhen Hicloud Data Center Technology is a China-based underwater infrastructure technology provider that enables subsea cloud computing by offering seawater-cooled, pressure-resistant data center modules.

Major companies operating in the underwater data center market are China Telecommunications Corporation, NEC Corporation, NYK Line, Mitsui O.S.K. Lines Ltd, Equinix Inc, Naval Group SA, Hitachi Systems Ltd, American Bureau of Shipping, Rittal GmbH & Co KG, Kinetics Inc, SubCom LLC, ST Telemedia Global Data Centres Pte Ltd, European Marine Energy Centre Ltd, CCCC Third Harbor Engineering Company Ltd, Subsea Cloud Inc, Aikido Technologies Inc, Nautilus Data Technologies Inc, Highlander Digital Technology Co Ltd, HiCloud Technology Co Ltd, NetworkOcean Inc.

North America was the largest region in the underwater data center market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the underwater data center market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the underwater data center market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The underwater data center market consists of revenues earned by entities by providing services such as data storage and processing, edge computing services, cloud infrastructure hosting, remote monitoring, and maintenance. The market value includes the value of related goods sold by the service provider or included within the service offering. The underwater data center market also includes sales of data storage units, edge computing modules, modular data center pods, and remote monitoring systems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.