Proposed underwater data center surprises regulators who hadn’t heard about it

Data centers powering the generative AI boom are gulping water and exhausting electricity at what some researchers view as an unsustainable pace. Two entrepreneurs who met in high school a few years ago want to overcome that crunch with a fresh experiment: sinking the cloud into the sea.

Sam Mendel and Eric Kim launched their company, NetworkOcean, out of startup accelerator Y Combinator on August 15 by announcing plans to dunk a small capsule filled with GPU servers into San Francisco Bay within a month. “There's this vital opportunity to build more efficient computer infrastructure that we're gonna rely on for decades to come,” Mendel says.

The founders contend that moving data centers off land would slow ocean temperature rise by drawing less power and letting seawater cool the capsule’s shell, supplementing its internal cooling system. NetworkOcean’s founders have said a location in the bay would deliver fast processing speeds for the region’s buzzing AI economy.