Global Floating Data Center on Water Market to Reach US$ 593 Million by 2031 at 12.8% CAGR, Led by Nautilus Data and Beijing Highlander

The global floating data center on water market has entered a significant growth phase in 2025, reaching new milestones in both scale and innovation. According to the latest market outlook report by QYResearch, the market is projected to grow from US$ 258 million in 2024 to US$ 593 million by 2031, representing a compound annual growth rate (CAGR) of 12.8%. This growth is fueled by rising demand for edge computing, cloud infrastructure expansion, and sustainability-focused data processing solutions.

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Companies Covered
• Nautilus Data Technologies, Inc
• Beijing Highlander Digital Technology Co., Ltd.
• Subsea Cloud Inc.
• Denv-R
• Microsoft
• Keppel Data Centres Pte Ltd

Nautilus Data Technologies, Inc. - EcoCore / Stockton 1 Floating Data Center
• Product: Stockton 1 Data Center - vessel-based floating data center
• Scalable IT Load: 6.5 MW across four secure vaults, each ranging from 1.0 to 2.5 MW
• Rack Density: Up to 55 kW per rack
• Redundancy: N+1 design ensures reliability
• Efficiency: PUE of just 1.15, independent of season or weather
• Physical Footprint: Approximately 13,000 sq ft of vault space
• Cooling Architecture: Utilizes raw water sourced at ~4,500 gallons per minute (GPM), supported by eight pumps delivering up to 12,000 GPM. Powered by a 69 kV substation feeding a 12 kV, 10 MW barge substation

Beijing Highlander Digital Technology Co., Ltd. - Underwater Data Module (Hainan Expansion)
• Product: 18 m-long pressure vessel module submerged off Hainan in February 2025
• Compute Capacity: Houses over 400 high-performance servers
• AI Workload: Supports an AI intelligent assistant capable of handling ~7,000 simultaneous conversations per second
• Architecture: Integrated into a larger underwater intelligent computing cluster with high-speed onshore connectivity

Subsea Cloud Inc. - "Jules Verne" Pressure Equalized Pod
• Product: "Jules Verne" submarine pod (approx. 20-ft container size)
• Deployment Depth: Positioned approximately 9 m underwater near Port Angeles, Washington
• Compute Specs: Contains 16 server racks (~800 servers), delivering around 1 MW IT capacity
• Connectivity: Connected to shore via a 100 Gbps fiber optic and power cable
• Design Advantage: Pressure-equalized construction avoids sealed pressure hulls, reducing cost and material load

Microsoft - Project Natick Underwater Data Center
• Product: Container-style underwater data center (tested 2018-2020)
• Reliability: Achieved 8x fewer hardware failures than comparable land-based facilities
• Cooling Efficiency: Operated ~10 °C cooler than onshore data centers using ambient seawater
• Deployment Specs: Installed ~117 ft beneath the sea near Orkney Islands, powered by local marine renewables
• Project Status: Concluded by 2024, served as proof-of-concept for future sustainable designs

Keppel Data Centres Pte Ltd - Floating Data Centre Module (FDCM) & DataPark+
• Product: Modular floating data center platform and DataPark+ concept
• Key Features: Uses seawater for closed-loop cooling, no potable or industrial water required
• Capacity Estimate: Each FDCM designed to support ~10 MW per barge
• Campus Vision: Multiple modular barges form a floating data park powered by shared renewable energy infrastructure
• Implementation: Regulatory approvals secured; final investment phase projected in early 2025

Application List
• Cloud Computing
• Edge Computing

Classification List (by Capacity Type)
• Small-scale (1-5 MW)
• Medium-scale (5-10 MW)
• Large-scale (>10 MW)
________________________________________
2025 Market Trends & Company Developments
Edge Computing Demand Accelerates Market Growth
One of the most impactful trends in 2025 is the accelerated deployment of edge computing infrastructure, particularly in urban and coastal regions. As smart cities, autonomous vehicles, IoT networks, and real-time mobile applications expand globally, traditional land-based data centers are being pushed to their limits in terms of location flexibility, latency performance, and environmental constraints. Floating data centers offer a scalable and geographically adaptive solution to these challenges.

The shift toward processing data closer to its origin rather than centralizing it in faraway hyperscale centers is driving demand for small to medium-scale floating data centers (1-10 MW capacity), especially in Asia-Pacific and Europe, where waterfront industrial zones are being transformed into edge hubs. Report forecasts highlight this as a core application area for new deployments through 2031.

Corporate Activity Surges in 2025
In July 2025, Mitsui O.S.K. Lines (MOL) signed a landmark agreement with Kinetics Technology to develop a high-capacity floating data center platform hosted on retrofitted vessels. The project is designed to support 20-73 MW of compute power, making it one of the largest proposed systems globally. Notably, the system will use seawater for cooling and will be powered via a hybrid model of floating power plants, grid connectivity, and renewables. It is currently in the feasibility assessment phase with pilot operations expected by 2027.

Similarly, in Japan, a consortium including NTT Facilities, Eurus Energy, MUFG, and Nippon Yusen has proposed a floating data center in Yokohama. Construction is set to begin in autumn 2025, with ambitions to extend into other coastal regions depending on pilot success and environmental clearance.

In China, Beijing Highlander Digital Technology Co., Ltd. continues to expand its underwater data center operations. In February 2025, the company deployed a new submerged unit off the coast of Hainan, adding to the capacity first installed in late 2023. These facilities are now running high-performance computing workloads for cloud and AI clients, marking a transition from concept to real-world deployment in China's smart infrastructure ecosystem.

Meanwhile, Nautilus Data Technologies, Inc., a pioneer in floating port-based data centers, is rolling out a new line of modular systems in California and Southeast Asia, with a special focus on port-centric data services. The company continues to lead in the application of natural water cooling, reducing both Power Usage Effectiveness (PUE) and carbon emissions compared to traditional facilities.

Sustainability and Regulation Drive Adoption
Environmental concerns and land scarcity are accelerating the adoption of offshore data centers. These floating platforms not only eliminate the need for large urban land plots but also significantly reduce cooling-related energy consumption. The use of ocean water as a cooling agent dramatically improves energy efficiency, helping companies meet sustainability goals and comply with increasingly strict carbon regulations, especially in Europe and parts of Asia.

New regulatory support in countries like Germany, Singapore, and South Korea is expected to encourage innovation in maritime infrastructure for IT. These governments are funding pilot projects that blend floating energy storage, modular server clusters, and high-speed satellite networking-technologies likely to converge in the next generation of data centers.

Investment Shifts Toward Modular, Mid-Scale Solutions
While hyperscale solutions are on the roadmap, 2025 is witnessing a surge in mid-scale floating data centers (5-10 MW) due to their deployability, cost-effectiveness, and compatibility with port authorities and city planning boards. Companies like Subsea Cloud Inc. and Keppel Data Centres Pte Ltd are focusing on pre-fabricated, modular data center pods that can be quickly transported and deployed on water bodies near metro areas.

These modular designs also allow for incremental capacity expansion, which aligns with the dynamic data traffic growth patterns in areas like 5G corridors, port logistics zones, and smart agriculture regions. Many players are pursuing multi-tenant models, turning these data centers into waterfront edge clouds.

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Verified list of downstream clients
City of Stockton
San Joaquin County
Backblaze, Inc.
Tencent
China Telecom
SenseTime
Sanya Yazhou Bay Science and Technology City
NetworkOcean
NTT Facilities
Eurus Energy
MUFG
Nippon Yusen
Subsea Cloud, Inc.
Keppel Corporation
Microsoft

The global floating data center on water market in 2025 is evolving rapidly from concept to commercial deployment. Fueled by the twin drivers of edge computing and environmental sustainability, and supported by active corporate R&D and strategic partnerships, the industry is poised to become a vital part of the global digital infrastructure. The forecast to 2031 suggests long-term viability and profitability for stakeholders investing early in this emerging frontier.

Chapter Outline:

Chapter 1: Introduces the report scope of the report, executive summary of different market segments (by region, product type, application, etc), including the market size of each market segment, future development potential, and so on. It offers a high-level view of the current state of the market and its likely evolution in the short to mid-term, and long term.
Chapter 2: key insights, key emerging trends, etc.
Chapter 3: Manufacturers competitive analysis, detailed analysis of the product manufacturers competitive landscape, price, sales and revenue market share, latest development plan, merger, and acquisition information, etc.
Chapter 4: Provides profiles of key players, introducing the basic situation of the main companies in the market in detail, including product sales, revenue, price, gross margin, product introduction, recent development, etc.
Chapter 5 & 6: Sales, revenue of the product in regional level and country level. It provides a quantitative analysis of the market size and development potential of each region and its main countries and introduces the market development, future development prospects, market space, and market size of each country in the world.
Chapter 7: Provides the analysis of various market segments by Type, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.
Chapter 8: Provides the analysis of various market segments by Application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.
Chapter 9: Analysis of industrial chain, including the upstream and downstream of the industry.
Chapter 10: The main points and conclusions of the report.

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