Mitsui O.S.K. Lines, Ltd. (MOL), Hitachi, Ltd., and Hitachi Systems, Ltd. announced the signing of a Memorandum of Understanding (MOU) on March 30, 2026, for the development, operation, and commercialization of Floating Data Centers (FDC) converted from second-hand vessels. The initiative aims to address the growing demand for data centers driven by the rapid proliferation of generative AI.

Project Timeline and Geographic Focus

Based on the MOU, the companies will conduct demand verification, review basic specifications and operational procedures, and carry out feasibility studies for the commercialization of FDCs, with operations planned to commence in 2027 or later. The project will focus primarily on Japan, where the Hitachi Group already has operational experience in land-based data centers, as well as Malaysia and the United States, where there are proven track records in providing services related to land-based data centers.

The initiative responds to continued growth in data center demand alongside the rapid proliferation of generative AI, creating a need for diverse data center solutions that consider factors such as location, availability of water resources for power generation and cooling, surrounding infrastructure, and disaster risks.

Company Roles and Responsibilities

MOL will leverage its expertise in studying and evaluating maritime operations, including vessel conversion plans, coordination with port authorities, and mooring and maintenance. The company will be responsible for planning and promoting vessel conversions, leading discussions with port authorities and other stakeholders, defining maritime operational requirements such as mooring and maintenance, and examining financing structures.

Hitachi and Hitachi Systems will be led by the Strategic SIB Business Unit, which drives new growth opportunities. They will utilize their experience in owning and operating land-based data centers in Japan, installing containerized data centers, and providing land-based data center services in Malaysia and the United States. Their responsibilities include technical studies on data center design, installation, and operation, defining IT infrastructure requirements such as networking and security, utilizing local expertise, and collaborating on customer requirement clarification and customer acquisition.

Hitachi will aim to expand HMAX to further advance and streamline data center operations in the future. HMAX by Hitachi is described as a suite of next-generation solutions designed to address complex challenges facing social infrastructure, combining advanced AI with deep domain knowledge.

Advantages of Floating Data Centers

FDCs offer several advantages compared to land-based data centers. They eliminate the need to secure large tracts of land or incur land acquisition costs. Securing large plots of land for data centers in the suburbs of major cities is becoming increasingly difficult, and in some cities, infrastructure concerns such as electricity, cooling water, environmental regulations, and resident consent have not kept pace, leading to proposals to halt the construction of new data centers. FDCs, which utilize ports and rivers, offer a solution that can be deployed even in such challenging areas.

The renovation work for FDCs takes approximately one year, potentially shortening the development period by up to three years compared with conventional land-based data center development. FDCs can introduce water cooling systems utilizing seawater and river water. Data centers consume large amounts of electricity and generate significant heat, requiring robust cooling systems. As conventional air cooling systems cannot adequately cool high-performance AI servers, the market is shifting toward water-cooled systems.

Water cooling requires large volumes of water, and some regions in the United States have experienced conflicts with residents concerned about potential shortages of potable water. As floating structures, FDCs can efficiently utilize seawater or river water for cooling, reducing both the power consumption required for server cooling and overall operational costs. Because FDCs are floating structures, they are easy to move in response to shifts in demand.

Benefits of Ship Conversion

Converting existing ships into FDCs provides a reduced environmental impact arising from the extraction and processing of raw materials through the reuse of existing ship hulls. The approach offers reduced initial investment by lowering construction costs and utilizing existing onboard systems such as air conditioning, water intake, and power generation, which is expected to reduce initial investment requirements.

The conversion provides extensive space availability. A car carrier with a floor area of approximately 54,000 square meters would rival one of Japan's largest onshore data centers in terms of total floor area.

MOL operates a fleet of more than 900 vessels, including LNG carriers, car carriers, oil tankers, and bulk carriers. The company is engaged in a wide range of social infrastructure businesses, such as offshore business, wind power generation, logistics, and real property, as well as B2C businesses, such as cruises and ferry services. Hitachi reported revenues for FY2024 totaling USD 61.34 billion, with 618 consolidated subsidiaries and approximately 280,000 employees worldwide.

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