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[Photo of a power barge (Source: https://karpowership.com/)]

The Potential of Offshore Data Centers Envisioned by Mitsui O.S.K. Lines and Nippon Yusen K.K.

As global digitalization accelerates and the adoption of generative AI expands, the demand for data processing is increasing year after year. However, onshore data centers face significant challenges, including power supply constraints, cooling efficiency issues, and land scarcity. Against this backdrop, initiatives to utilize the sea as a new frontier for data infrastructure are rapidly gaining attention.

Mitsui O.S.K. Lines (MOL): Offshore Data Centers in Partnership with Power Barges

Mitsui O.S.K. Lines (MOL) has signed a basic agreement with a UK-based power barge company and launched an initiative to realize “offshore data centers supplied with power from a power barge.” This system involves converting used vessels to house data centers, which are then stably supplied with electricity from the adjacent power barge. MOL aims for commercialization in 2027, planning operations on a scale of 20 to 70 MW.

A key feature of this project is its flexibility: it can be deployed without reliance on land-based power grids or designated land plots. Other attractive aspects include efficient cooling that utilizes seawater and the ability to change the deployment location based on demand, thanks to its movable, floating structure. This new model for sustainable IT infrastructure is garnering significant global attention.

Nippon Yusen K.K. (NYK) and NTT: Offshore Green DCs Aiming for 100% Renewable Energy

Meanwhile, Nippon Yusen K.K. (NYK), in collaboration with NTT Facilities, Eurus Energy, and others, has started a demonstration experiment for an “offshore floating green data center” with the city of Yokohama.

They are verifying 100% renewable energy operation by installing solar power generation equipment and storage batteries on a floating facility set up at Osanbashi Pier in Yokohama. The plan is to create a model case for a low-environmental-impact, next-generation data center, with a future view toward direct integration with offshore wind power generation.

This initiative is verifying resistance to salt damage, operational stability, and energy efficiency in a real marine environment, exploring the potential for expansion from urban ports to the open sea.

The Expanding Future of Offshore Data Centers

MOL’s “Power Barge Model” and NYK/NTT’s “Renewable Energy Model” have different approaches, but they share the common goal of realizing sustainable data centers that are independent of onshore infrastructure.

• One approach aims for large-scale operation by leveraging power barges.

• The other approach aims for zero emissions through renewable energy.

Both initiatives hold the potential to contribute to global digital infrastructure strategies, with a view toward future integration with international communication networks and subsea cables.

Going forward, in addition to technical verification, crucial elements will include cross-sector collaboration—spanning telecommunications, power, and shipping—as well as regulatory development. These ventures into the new domain of offshore data centers are poised to attract worldwide focus as a Japanese-born model for the data center industry.

The Japanese government has started a nationwide call for proposals from municipalities to identify suitable locations for new data center clusters. The new system, known as “GX (Green Transformation) Strategic Zones,” aims to create hubs for data centers and other decarbonization-related industries. Designated regions are expected to receive preferential treatment, including subsidies funded by “GX Economic Transition Bonds” and deregulation of land use.

The government’s goal is to build a sustainable and resilient domestic digital and industrial infrastructure, all underpinned by decarbonized energy sources.

Power Requirements: A Push for 1 Million kW-Class Expansion

One of the most notable conditions of the new initiative is the scale of power supply. The government requires that candidate sites have the capacity to expand their power grid connections to 1 million kilowatts (1,000 megawatts) in the future. With the rapid expansion of data center demand in Japan, the focus isn’t just on securing renewable energy but on creating clusters with robust power infrastructure that can handle significant future growth.

This requirement aims to not only decentralize data centers away from their traditional concentration in urban areas but also to build a nationwide infrastructure that is more resilient to power supply risks.

A Call for Decentralization and Industrial Transition

The call for proposals extends beyond just data centers. The government is also looking at repurposing former petrochemical complexes and creating industrial parks that utilize renewable energy. This is part of a broader strategy to transform declining traditional industrial centers into new engines of regional economic growth based on GX-aligned research, development, and renewable energy.

Other conditions for proposals include securing a stable land area of at least 30 hectares and ensuring robust communication infrastructure. This requires comprehensive proposals that are developed through close collaboration between local municipalities and private companies.

The Strategy Behind the New Clusters

Currently, a staggering 90% of Japan’s data centers are concentrated in major metropolitan areas. This poses significant risks from natural disasters and power shortages, making decentralization a pressing issue.

The government’s “1 million kW-class” requirement is more than just a simple decentralization policy. It signals a strong intent to create new industrial clusters built on a foundation of powerful, sustainable energy infrastructure. In other words, the policy clearly reveals a strategic aim to create new growth hubs in regional areas that complement the existing metropolitan clusters. This initiative is expected to spark intense competition among municipalities across the country vying for the “GX Strategic Zone” designation.