MOL and Hitachi Begin Initiative Toward Joint Development of 'Floating Data Centers' Converted from Used Ships

Mitsui O.S.K. Lines, Ltd. (President & CEO: Takeshi Hashimoto; Headquarters: Minato-ku, Tokyo; hereinafter "MOL"), Hitachi, Ltd. (Headquarters: Chiyoda-ku, Tokyo; President & CEO: Toshiaki Tokunaga; hereinafter "Hitachi"), and Hitachi Systems, Ltd. (Headquarters: Shinagawa-ku, Tokyo; President and CEO: Takehiko Watanabe; hereinafter "Hitachi Systems") have signed a memorandum of understanding (hereinafter "the MOU") for the development, operation, and commercialization of "Floating Data Centers (hereinafter "FDC")" converted from used ships. Based on this MOU, the three companies will conduct demand verification, examine basic specifications and operational procedures, and perform feasibility studies for commercialization, with an eye toward starting operations from 2027. The focus will be primarily on Japan, where the Hitachi Group already has a track record of operating land-based data centers, as well as Malaysia and the United States, where they have experience providing land-based data center services.

In recent years, the rapid spread of generative AI has led to a continuous expansion in demand for data centers. This has created a need for diverse supply models that account for location, the securing of water resources for power and cooling, surrounding infrastructure, and disaster risks. The three companies will leverage their respective track records, knowledge, and know-how to verify the commercial viability of "FDCs converted from used ships," an option that eliminates the need for large-scale land acquisition, allows for shorter construction periods and relocation, and reduces environmental impact and costs by reusing existing hulls.

Roles of Each Company

- MOL: Based on its track record in planning ship-to-data-center conversions, coordinating with port authorities, and examining maritime operations including mooring and maintenance—efforts it has been advancing globally—MOL will be responsible for "planning and promoting ship conversion, leading discussions with port authorities, organizing maritime operational requirements such as mooring and maintenance, and examining financing schemes."

- Hitachi / Hitachi Systems: Led by the Strategic SIB Business Unit, which spearheads the acquisition of new growth opportunities, Hitachi and Hitachi Systems will be responsible for "technical examination of data center design, construction, and operation; definition of IT infrastructure requirements such as networks and security; utilization of local knowledge; and cooperation in organizing customer requirements and customer development." This is based on their experience in owning and operating land-based data centers in Japan, building container-type data centers, and providing land-based data center facility services in Malaysia and the United States.

Furthermore, the Hitachi Group is deploying "HMAX by Hitachi" (hereinafter "HMAX"), a next-generation solution suite that tackles the most complex challenges of social infrastructure by combining advanced AI enhanced with deep domain knowledge. The companies aim to eventually deploy HMAX to advance and streamline data center operations.

[Advantages of FDC Compared to Land-Based Building Data Centers]

- No need for large-scale land acquisition or land purchase costs in urban areas: Securing large plots of land for data centers near major cities is becoming difficult. Additionally, some cities have proposed halting new data center construction because infrastructure (power, cooling water, environmental regulations, resident consensus, etc.) cannot keep up. FDCs, which utilize ports and rivers, are a new solution that may be deployable even in such regions.

- Shortened construction period: FDC conversion work takes approximately one year, which is expected to shorten the development period by up to three years compared to conventional land-based data center development.

- Introduction of water-cooled cooling systems utilizing seawater and river water: Data centers consume large amounts of electricity and generate significant heat, requiring cooling systems. In the data center market, there is a shift from conventional air-cooling to water-cooling because air-cooling cannot sufficiently cool high-performance servers for AI. However, water-cooling requires large amounts of water, and in some regions of the U.S., this has led to conflicts with residents over concerns about potential shortages of domestic water. As FDCs are floating, they can efficiently utilize seawater or river water for cooling systems, thereby reducing the power consumption and operational costs associated with server cooling.

- Relocatable: Because FDCs are floating, it is possible to change their operating location in response to changes in demand.

[Advantages of Constructing FDCs by Converting Used Ships]

- Reducing environmental impact resulting from raw material mining and processing by utilizing existing hulls.

- Reduction of initial investment: In addition to reducing construction costs, initial investment costs are expected to be lowered by utilizing existing shipboard systems (air conditioning, water intake, generators, etc.).

- Extensive space: Example: A car carrier with a floor area of approximately 54,000 square meters is comparable to one of the largest land-based data centers in Japan in terms of total floor area.

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