Regulators Caught Off-Guard By Plans for Underwater Data Center

Data centers, crucial in supporting the generative AI boom, are increasingly straining resources, consuming significant amounts of water and electricity. To address these issues, two entrepreneurs, Sam Mendel and Eric Kim, have proposed an innovative solution: submerging data centers underwater.

Launched via Y Combinator, their company, NetworkOcean, announced its intention to deploy a small capsule filled with GPU servers into San Francisco Bay within a month. The founders argue that underwater data centers can offer more efficient infrastructure while leveraging seawater for cooling, potentially reducing power consumption and its impact on ocean temperatures.

However, environmental scientists have raised concerns about potential adverse effects, including toxic algae blooms, and the disturbance of marine life habitats. Moreover, inquiries by WIRED revealed that NetworkOcean has been moving forward without obtaining necessary permits from regulatory authorities, such as the Bay Conservation and Development Commission (BCDC) and the San Francisco Regional Water Quality Control Board. Failure to secure these permits might result in significant fines.

The controversy recalls a similar incident in 2016 when Microsoft was found to have violated regulations by conducting a test for Project Natick, an underwater data center initiative, without proper permits. Although environmental damage was not detected, the case highlighted the complexities and regulatory hurdles facing such innovative projects.

NetworkOcean’s founders, though, maintain that their project, which involves a brief test in a privately owned area of the bay, does not require regulatory approvals, a claim disputed by experts and regulators. Retired water board official Thomas Mumley and other regulatory experts argue that even seemingly minor projects must comply with environmental laws to prevent potential harm.

As technological innovations like underwater data centers progress, the tension between advancing sustainable solutions and adhering to regulatory frameworks remains evident. It underscores the need for thorough evaluations to balance technological developments and environmental protection. For a closer look at this development, refer to the original WIRED article.