The Japanese shipping company Mitsui O.S.K. Lines (MOL) has announced the signing of a memorandum of understanding with Hitachi and Hitachi Systems to explore the conversion of old ships into floating data centers (FDC, for its acronym in English), an initiative through which the three companies seek to respond to the growing demand for computing capacity associated with the development of generative artificial intelligence.
The agreement includes conducting feasibility studies, verifying demand, reviewing basic specifications and operational procedures, as well as analyzing the conditions for the commercialization of this type of facilities, with the goal of starting operations in 2027 or later. In the first phase, the project will focus on Japan, leveraging Hitachi group's experience in terrestrial data centers, although the companies do not rule out possible expansion to Malaysia and the United States.
Compared to conventional land-based facilities, floating data centers present various potential advantages, as noted by MOL. They do not require large tracts of land, can use seawater or river water for cooling, and reduce energy consumption. Additionally, the reconversion of a ship into a floating data center is estimated to take about a year, which could shorten the usual development timelines of conventional terrestrial data centers by up to three years. The Japanese shipping company pointed out that a car carrier with an area of approximately 54,000 square meters could equal in total area one of the largest terrestrial data centers in Japan.
The initiative comes in a context of growing concern over the consumption of water resources associated with the data center industry. Google reported that its facilities used nearly 30.6 billion liters of water in 2024, almost double the 16.3 billion recorded in 2021, an increase attributed to the growth of high-performance artificial intelligence workloads. According to a report from the World Economic Forum, the accelerated adoption of artificial intelligence could generate between 4.2 and 6.6 billion cubic meters of additional water extractions globally by 2027, both for direct cooling and for associated electricity generation.
Under the agreement, MOL will lead the planning and promotion of ship conversions, maritime operations, berthing and maintenance, coordination with port authorities, and evaluation of financing structures. Hitachi and Hitachi Systems, for their part, will be responsible for technical design, information technology infrastructure, installation and operation of data centers, and client acquisition. Hitachi also plans to expand its "HMAX by Hitachi" platform to optimize the management of future data center operations.