In 2018, Microsoft launched Project Natick with a bold vision: to test the feasibility and benefits of placing data centers underwater. The project saw the deployment of massive tubes 117 feet beneath the surface of the North Sea, off the coast of Scotland. The aim was to leverage the natural cooling properties of the sea and to create a unique, isolated environment where data centers could potentially operate more efficiently.

One of the critical aspects of this experiment was the environment. Unlike traditional data centers, the underwater facility was filled with nitrogen instead of oxygen. This innovative approach aimed to reduce the risk of oxidative damage to the equipment, which can be a significant issue in standard data center environments. Furthermore, the separation from human activity meant there was no risk of physical interference with the delicate machinery.

Despite the promising nature of Project Natick, Microsoft decided to halt the deployment of underwater data centers as of 2024. The company has not disclosed extensive details on the reasons behind this decision. However, Noelle Walsh, Corporate Vice President of Microsoft’s Cloud Operations + Innovation team, indicated that the experiment had served its purpose. “My team worked on it, and it worked. We learned a lot about operations below sea level and vibration and impacts on the server. So we’ll apply those learnings to other cases,” Walsh explained to Data Center Dynamics.

Although the underwater data centers are no longer active, Microsoft intends to use the insights gained from Project Natick for future research and development. In a statement, the tech giant mentioned, “While we don’t currently have data centers in the water, we will continue to use Project Natick as a research platform to explore, test, and validate new concepts around data center reliability and sustainability, for example with liquid immersion.”

The demand for data centers is escalating globally, driven by numerous factors, including the widespread adoption of artificial intelligence (AI). In 2024, AI has become ubiquitous, powering everything from smartphones to advanced computing systems. Much of the data processing for AI is performed in the cloud, necessitating robust and scalable data center infrastructures.

Aside from AI, other technologies such as cloud computing, smart home devices, and general web activities continue to push the demand for data centers. This surge requires innovative solutions to manage energy consumption and ensure sustainability. Reducing energy usage in data centers is crucial for easing the burden on energy grids and supporting broader environmental goals.

The cessation of underwater data centers does not mark the end of Microsoft’s pursuit of innovation in data center technology. Instead, it underscores the company’s commitment to exploring diverse and sustainable solutions to meet the growing demands of the digital age. By leveraging the lessons from Project Natick, Microsoft is well-positioned to pioneer the next generation of data center technologies.

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