Japanese industrial and technology conglomerates have signed an agreement to explore the development and commercialisation of floating data centres, positioned as a way to address rising global demand for digital infrastructure while reducing land use and environmental impact.
Mitsui OSK Lines (MOL), Hitachi, and Hitachi Systems, have signed a Memorandum of Understanding (MOU) to jointly develop, operate and commercialise a “floating data centre (FDC) converted from a second-hand vessel,” the companies announced on 30 March.
Under the agreement, the partners will carry out demand verification, assess technical specifications and operational procedures, and undertake feasibility studies for the concept, with a target of commencing operations in or after 2027. Markets earmarked for initial focus include Japan, Malaysia and the US, where the Hitachi Group already has experience delivering land-based data centre services.
Addressing surging AI-driven demand
The initiative comes amid rapidly growing demand for data centre capacity, driven in part by the expansion of generative AI. This growth is placing pressure on land availability, energy supply, cooling resources and local infrastructure, while also raising environmental and community concerns.
The three companies say floating data centres could provide a flexible alternative to traditional facilities by removing the need for large land acquisitions and enabling deployment in locations where onshore development is constrained. By repurposing existing vessels, the project also aims to reduce environmental impact and capital costs associated with new construction.
Division of responsibilities
MOL will lead on maritime elements of the project, including vessel conversion planning, coordination with port authorities, and defining operational requirements such as mooring and maintenance. The company will also examine financing structures.
Hitachi and Hitachi Systems will focus on data centre design, installation and operation, as well as IT infrastructure such as networking and security. Drawing on their experience in Japan and international markets, they will also support customer engagement and requirements analysis.
The Hitachi Group intends to integrate its “HMAX by Hitachi” solutions suite into the concept to enhance operational efficiency through advanced AI and digital technologies.
Environmental and operational advantages
The companies make the case for several potential benefits of floating data centres compared with land-based facilities. These include: avoiding land acquisition, shortening construction timelines and implementing cooling systems that make fewer demands on resources such as potable water.
For example, avoiding the need to secure large tracts of land or incur land acquisition costs. Securing large plots of land for data centres in the suburbs of major cities is becoming increasingly difficult. FDCs, which utilize ports and rivers, offer a way to sidestep the issue.
Renovation of a vessel into a data centre is expected to take around one year—potentially reducing development time by up to three years compared with conventional builds.
Water-based cooling is a central feature of the concept. Floating facilities can utilise seawater or river water for heat dissipation, reducing energy consumption and avoiding the strain on freshwater resources that might conflict with local communities, as has happened in parts of the US.
Mobility is another advantage, allowing facilities to be relocated in response to shifting demand.
A circular vote winner?
And obviously, the fact of reusing existing ship hulls makes the concept appealingly circular, opening up an avenue for repurposing ostensible waste while also avoiding the further extraction and processing of raw materials, and any associated emissions.
The announcement also mentions its arguable potential to lower the upfront investment for a data centre by leveraging onboard systems such as power generation, water intake and air conditioning.
In terms of scale, the companies say converting a large car carrier, offering approximately 54,000 m2 of floor space, could rival one of Japan’s largest onshore data centres in size.