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. (Headquarters: Chiyoda-ku, Tokyo; President & CEO: Toshiaki Tokunaga; hereinafter "Hitachi"), and Hitachi Systems, Ltd. (Headquarters: Shinagawa-ku, Tokyo; President & CEO: Takehiko Watanabe; 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 feasibility studies, define basic specifications, examine operational procedures, and verify commercialization, aiming for operations to begin from 2027 onwards. The focus will be on regions where the Hitachi Group already has a track record in land-based data center operations, such as Japan, Malaysia, and the United States.

In recent years, the rapid spread of generative AI has led to a continuous increase in demand for data centers, necessitating diverse supply models that account for location, access to power and water for 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 eliminate the need for large-scale land acquisition, offer shorter construction periods, are relocatable, and reduce environmental impact and costs by reusing existing ship hulls.

Roles of Each Company

・MOL:
Leveraging its experience in planning ship-to-data-center conversions, 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 requirements for maritime operations such as mooring and maintenance, and examining financing schemes."

・Hitachi / Hitachi Systems:
Led by Hitachi's Strategic SIB Business Unit, which drives 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 networks and security; utilizing local knowledge; and cooperating in organizing customer requirements and business development." Furthermore, the Hitachi Group aims to deploy these as future-ready data centers using "HMAX by Hitachi," a next-generation solution suite that addresses complex social infrastructure challenges by combining advanced AI with deep domain knowledge.

(Note) [Advantages of FDC 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 difficult. FDCs, which utilize ports and rivers, offer a new solution that can be deployed in regions where new land-based construction is restricted due to infrastructure limitations (power, cooling water, environmental regulations, etc.).

・Shorter construction period
FDC conversion is expected to take about one year, potentially shortening the development period by up to three years compared to conventional land-based data center construction.

・Introduction of water-cooling systems using seawater/river water
FDCs can efficiently utilize seawater or river water for cooling systems, reducing the power consumption and operational costs associated with cooling high-performance AI servers, while avoiding the water scarcity concerns associated with land-based facilities.

・Relocatable
As they are floating, FDCs 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 reducing the environmental burden associated with raw material extraction and processing.

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

・Large space
For example, a car carrier with approximately 54,000m2 of floor space is comparable to one of the largest land-based data centers in Japan.