Floating data centres? Hitachi, MOL find new ways to meet growing AI demand

Hitachi and Hitachi Systems have signed a memorandum of understanding (MoU) with Japan’s Mitsui OSK Lines (MOL) to develop floating data centres. The plan is to convert older ships (vessels) into data centres to satisfy growing AI demand.

Both companies will conduct feasibility studies with a view to starting operations from 2027 or later. They will first conduct demand verification, review basic specifications and operational procedures, with the project primarily focused in Japan.

Hitachi Group already boasts high-performing data centres on land in Japan, in addition to Malaysia and the US. Hitachi and Hitachi Systems will handle data centre design, IT infrastructure, operations and customer engagement for this project, with MOL responsible for vessel conversion planning, maritime operations and coordination with port authorities and financing structures.

Floating data centres, or FDCs, could harness seawater or river water for cooling, thereby reducing both power consumption for cooling and operational costs. Leveraging their industry expertise, Hitachi, Hitachi Systems and MOL will assess how feasible commercialising vessels into data centres – but so far, the benefits could include eliminating the need to secure a large amount of land, a shorter construction period and less environmental impact, the companies said.

Land is currently a significant barrier for the data centre industry, with certain hotspot areas ‘maxed out’ of space and capacity. Not needing to secure land or incur acquisition costs could be a new solution for the industry, offering a solution that can be deployed in challenging areas – especially if these vessels don’t need grid access.

Reusing vessels could also significantly lower the cost of the project, and because they would be floating structures, they are easy to move to cater to shifting demands.

The companies said renovation work for FDCs could take approximately one year, shortening the development period by up to three years compared to land data centre development.

Another potential benefit is utilising seawater and river water for cooling systems. Given that data centres consume significant electricity and generate plenty of heat, the companies said FDCs would be able to significantly reduce the power consumption required for server cooling – and hopefully curb concerns over data centres using potable water.

The news comes as demand for data centres continues to soar worldwide, particularly as appetite for AI shows no signs of slowing. This has created a need for the industry to consider new solutions to curb energy and water use and prioritise cooling and disaster risks.

Excitement has already been generated about space data centres, for example, to leverage uninterrupted solar power and operate at higher efficiency. The likes of Elon Musk have predicted that, within two to three years, the “lowest cost way to generate AI compute will be in space”.

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