AI infrastructure is buckling under global demand. High-density workloads are placing extraordinary demands on power grids and data centres. We’re seeing this in traditional data centre hubs like Paris, London, Amsterdam and Frankfurt. Limited space, power, cooling constraints, and environmental accountability are causing the hyperscalers to think differently.
Remote coastal regions are becoming viable alternatives. These locations offer more physical space compared to Tier-1 data centre hubs, better sustainability options, and closer access to natural resources. The next generation of data centres needs to be AI-ready. Built for rising power densities, scalable cooling, and the projected 165% surge in global data centre energy demand by 2030.
Cooling off
As server density increases, so does the need for smarter cooling systems. Air cooling, long the norm, is now inadequate for high-performance AI clusters. AI workloads generate far more heat than traditional legacy workloads. Thermal management now needs new thinking.
By drawing in cold seawater and cycling it through heat exchangers, coastal campuses can maintain optimal operating temperatures while reducing their energy consumption. Unlike traditional mechanical chillers, seawater systems require less infrastructure and electricity, and create no environmental impact. The water being drawn from the sea is treated and returned without harming marine ecosystems.
With countries and enterprises examining the role they play in ESG, traditional urban data centres aren’t suitable for servicing AI workloads and meeting lofty sustainability targets.
Of course, there are also cost advantages to using hydroelectric power. Fewer mechanical parts and lower energy needs reduce operational expenditure. At hyperscale, these savings make a considerable difference, without draining already strained urban infrastructure.
Anchored for scale
Perhaps the most notable shift in coastal infrastructure is the rise of purpose-built campuses designed specifically for compute-intensive workloads. These aren’t retrofits – they’re purpose-built for AI from the ground up.
That means support for higher rack densities, immersion and liquid cooling, flexible floor plans, and advanced power delivery architectures. Traditional metros often can’t meet the incredible power demands of high-capacity AI infrastructure. Think of the power needed for training and inferencing, for example. Coastal regions offer direct access to high-voltage transmission infrastructure or dedicated substations, meaning faster deployment and lower carbon energy sources.
Another key advantage is space. Without the real estate constraints of being in a dense city, operators can build large, modular campuses with long-term scalability. If data infrastructure needs to double or triple in short cycles, this flexibility is essential to keep up with demand.
Taking a plunge
The push for sustainability is rethinking how data centres integrate with the environment and the grid. Many coastal facilities are now being designed with embedded renewable energy strategies, such as onsite solar, wind, or access to hydroelectric sources, incorporating grid interconnection strategies that maximise energy efficiency and carbon transparency.
Coastal locations also unlock powerful advantages in global connectivity. As subsea cable systems evolve to support AI-grade data transfer speeds, landing sites are becoming key assets. Proximity to these cables allows coastal data centres to deliver ultra-low latency connections across continents, bypassing congested and ageing terrestrial networks. The result is a more direct, scalable network topology that supports AI’s insatiable bandwidth needs.
Beyond the sea
Hyperscalers and the Neoclouds aren’t moving to the coast for the scenery. They’re making a strategic pivot to locations that can support the scale, speed, and sustainability to support AI at the production scale.
As AI moves from pilot projects to infrastructure-scale deployment, coastal campuses are positioned to become key components of the digital backbone. Once overlooked in favour of city hubs, these locations may soon define the future of data infrastructure.
