MOL–Hitachi MOU moves data centres offshore as land constraints tighten

Projects target Japan first with expansion planned in Malaysia and the US.

Mitsui O.S.K. Lines (MOL), Hitachi, and Hitachi Systems have signed a memorandum of understanding to develop and commercialise floating data centres converted from second-hand vessels, with operations targeted from 2027 onwards.

The partners will conduct demand verification, define specifications and operational procedures, and carry out feasibility studies for the project, according to a press release.

It will have a primary focus on Japan, alongside Malaysia and the United States, where Hitachi has experience in land-based data centre services.

The initiative comes as demand for data centres rises alongside the growth of generative artificial intelligence (AI), placing pressure on land availability, power supply, water resources, and surrounding infrastructure.

Floating data centres could address these constraints by using ports and rivers instead of large land sites and removing the need to secure large tracts of land, the press release added.

Under the agreement, MOL will lead vessel conversion planning, coordinate with port authorities, define maritime requirements including mooring and maintenance, and examine financing structures.

Hitachi and Hitachi Systems will oversee data centre design, installation, and operations, and define IT infrastructure requirements such as networking and security.

The companies said converting existing vessels could reduce development timelines, with renovation work estimated at approximately one year, potentially shortening development by up to three years compared with land-based projects.

The use of existing ship hulls and onboard systems, including air conditioning, water intake, and power generation, is expected to lower initial investment and reduce material use.

Floating data centres would also use seawater or river water for cooling, which the companies said could lower power consumption linked to server cooling.

Conventional air cooling systems face limits in handling heat from high-performance AI servers, whilst water cooling systems require large volumes of water.

The partners said the floating structure would allow relocation in response to changes in demand.

They added that vessel size could support large-scale capacity, citing a car carrier with about 54,000 square metres of floor area as comparable to one of Japan’s largest land-based data centres.