As the artificial intelligence (AI) boom strains global power grids, tech giants are looking to the sea and stars for solutions. In a significant move, Samsung Electronics (OTC:SSNLF) and OpenAI are collaborating to develop floating data centers on the ocean, aiming to tackle land scarcity and the immense energy costs of cooling AI hardware.
Ocean Water To Help Cool AI Infrastructure
The partnership, which involves Samsung SDS, Samsung C&T, and Samsung Heavy Industries, follows a recent visit to Korea by OpenAI CEO Sam Altman.
According to a Korea JoongAng Daily report, the project’s goal is to submerge AI infrastructure, using cold seawater for direct and efficient cooling—a process that accounts for roughly 40% of a land-based data center’s power consumption.
Floating Data Centers On Water Can Cut Energy Use By 70%?
By moving offshore, the companies believe they can dramatically lower energy use and carbon emissions. “We plan to use proprietary technologies to develop floating data centers, offshore power facilities and integrated control centers,” a Samsung official stated. Experts estimate that underwater facilities could cut total energy use by up to 70% and reduce land and construction costs by 30-40%.
This maritime venture is part of a larger industry-wide search for sustainable alternatives to power the next generation of computing. The staggering energy demands of AI have prompted other tech visionaries to look even further afield: to space.
See Also: OpenAI Taps Samsung And SK Hynix For Massive AI Data Push, Including New Korea Data Center
Data Center In Space?
Venture capitalist Chamath Palihapitiya recently issued a stark warning about the strain on terrestrial power grids, predicting that without a new approach, “electricity rates will double in the next five years.”
His proposed solution involves placing data centers in orbit to harness limitless solar power and the natural vacuum of space for cooling.
Amazon.com Inc. (NASDAQ:AMZN) founder Jeff Bezos echoed this vision, predicting that orbital data centers could become cost-competitive with terrestrial ones within two decades. Speaking at an event in the beginning of October, Bezos highlighted the key advantage of an orbital facility.
“We have solar power there, 24/7,” he said. “There are no clouds and no rain, no weather.” Whether floating on the ocean or orbiting the planet, the race is on to build the sustainable infrastructure required for the future of AI.
Price Action
Here is a list of some AI-linked exchange-traded funds that investors can consider.
ETF Name | YTD Performance | One Year Performance |
iShares US Technology ETF (NYSE:IYW) | 23.22% | 27.51% |
Fidelity MSCI Information Technology Index ETF (NYSE:FTEC) | 21.22% | 25.83% |
First Trust Dow Jones Internet Index Fund (NYSE:FDN) | 14.70% | 28.29% |
iShares Expanded Tech Sector ETF (NYSE:IGM) | 25.01% | 31.17% |
iShares Global Tech ETF (NYSE:IXN) | 23.48% | 25.94% |
Defiance Quantum ETF (NASDAQ:QTUM) | 36.39% | 78.55% |
Roundhill Magnificent Seven ETF (BATS:MAGS) | 18.08% | 35.57% |
The S&P 500 index ended 0.40% higher at 6,671.06 on Wednesday, whereas the Nasdaq 100 index advanced 0.68% to 24,745.36. On the other hand, Dow Jones fell 0.037% to 46,253.31.
On Thursday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were trading in a mixed manner.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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