AI Data Centers Face Backlash, Drive Innovation to Oceans

On July 18, 142 protests occurred across 42 U.S. states, united by a common objective: to halt data center development within American communities. This wave of demonstrations is part of an escalating movement aiming to prevent data centers from being established in towns nationwide. Currently, 183 U.S. municipalities have implemented data center moratoriums or outright bans, as documented by the U.S. Data Center Moratorium Tracker. Public discontent stems from several factors, including the substantial electricity and water consumption of these facilities, the failure to deliver on promised job creation, and the issue of noise pollution. A Gallup poll conducted in March 2026 revealed that 70% of surveyed Americans expressed opposition to the construction of AI data centers in their local vicinities. As local governments increasingly restrict the development of AI infrastructure, both domestic and international companies are actively seeking real estate in unconventional locations. One such venture is Portland, Oregon-based startup Panthalassa, which proposes establishing data centers on the ocean. Following successful prototypes off the coast of Washington state, Panthalassa's orb-shaped pilot model, named Ocean-3, is slated to be deployed hundreds of miles into the Pacific Ocean. This innovative design will harness energy from ocean waves by utilizing pressurized seawater to rotate an internal turbine. The electricity generated will then power a network of interconnected computers housed within the spherical structure. A significant point of contention for critics of traditional data centers is their substantial water requirements for server cooling. Panthalassa aims to circumvent these concerns by leveraging the naturally cool ocean environment to maintain its system's temperature. The Ocean-3 project has already secured $225 million in funding and achieved a valuation of nearly $2 billion, even before its official launch. Panthalassa is not the sole entity exploring offshore data center solutions. China has already launched the Shanghai Lingang undersea data center, situated six miles off the coast of Shanghai. This facility is recognized as the first of its kind to be powered by wind energy and operate underwater. According to the Chinese government, the project utilizes 95% green electricity, resulting in a 22.8% reduction in power consumption. The facility's wind-powered electricity generation is a key component of its sustainable operation.