MOL and Hitachi Launch Joint Development of Floating Data Centers Using Converted Used Ships

Mitsui O.S.K. Lines, Ltd. (President & CEO: Takeshi Hashimoto; Headquarters: Minato-ku, Tokyo; hereinafter "MOL"), Hitachi, Ltd. (Executive Chairman, President & CEO: Toshiaki Tokunaga; Headquarters: Chiyoda-ku, Tokyo; hereinafter "Hitachi"), and Hitachi Systems, Ltd. (President and CEO: Takehiko Watanabe; Headquarters: Shinagawa-ku, Tokyo; hereinafter "Hitachi Systems") have signed a Memorandum of Understanding (MOU) for the development, operation, and commercialization of "Floating Data Centers (FDC)" created by converting 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 a target to begin operations from 2027 onwards. The focus will be on regions where the Hitachi Group already has a track record in operating land-based data centers, such as Japan, as well as Malaysia and the United States, where the group provides data center-related services.

In recent years, the rapid proliferation of generative AI has led to a continuous increase in demand for data centers. This has created a need for diverse supply models that account for location, access to water resources for power and cooling, surrounding infrastructure, and disaster risks. The three companies will leverage their respective expertise and know-how to verify the commercial viability of FDCs, which offer advantages such as eliminating the need for large-scale land acquisition, shorter construction periods, mobility, and reduced environmental impact and costs through the reuse of existing ship hulls.

Roles of Each Company

・MOL: Leveraging its experience in planning ship-to-data-center conversion projects, coordinating with port authorities, and evaluating maritime operations including mooring and maintenance, MOL will be responsible for "planning and promoting ship conversion, leading discussions with port authorities, defining maritime operational requirements such as mooring and maintenance, and examining financing schemes."

・Hitachi / Hitachi Systems: Led by Hitachi's Strategic SIB Business Unit, which focuses on capturing new growth opportunities, Hitachi and Hitachi Systems will utilize their experience in owning and operating land-based data centers in Japan, building container-type data centers, and providing data center facility services in Malaysia and the U.S. They will be responsible for "technical studies on data center design, construction, and operation; defining IT infrastructure requirements such as network and security; utilizing local expertise; and collaborating on customer requirement definition and business development." Furthermore, the Hitachi Group aims to deploy these as "HMAX by Hitachi" (hereinafter "HMAX"), a next-generation solution suite that addresses complex social infrastructure challenges by combining deep domain knowledge with advanced AI, to enhance the sophistication and efficiency of future data center operations.

(Note) [Advantages of FDCs Compared to Land-Based Data Centers]

・No need for large-scale land acquisition or high land costs
Securing large plots of land for data centers near major cities is becoming increasingly difficult. In some cities, new construction is being halted due to infrastructure limitations (power, cooling water, environmental regulations, community consensus). FDCs, which utilize ports and rivers, are a new solution that can be deployed even in such regions.

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

・Introduction of water-cooling systems using seawater and river water
Data centers require cooling systems due to high power consumption and heat generation. The market is shifting from air-cooling to water-cooling to handle high-performance AI servers. However, water-cooling requires large volumes of water, which has led to community concerns in some regions, such as the U.S., regarding water shortages. As FDCs are floating, they can efficiently utilize seawater or river water for cooling, thereby reducing power consumption and operational costs.

・Relocatable
Because FDCs are floating, they can be moved to different locations in response to changing demand.

[Advantages of Converting Used Ships for FDCs]

・Reduced environmental impact by utilizing existing hulls, thereby avoiding the environmental burden associated with raw material extraction and processing.

・Reduced initial investment through lower construction costs and the reuse of existing ship systems (air conditioning, water intake, generators, etc.).

・Expansive space
Example: A car carrier with approximately 54,000m2 of floor space is comparable to one of the largest land-based data centers in Japan in terms of total floor area.