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China races ahead with underwater data centers as Microsoft dumps the idea

China has deployed 400 high-performance servers beneath the sea as part of an expanding underwater data center in Lingshui, Hainan, providing computing power equivalent to 30,000 high-end gaming PCs operating simultaneously. This infrastructure will complete a year’s worth of computations for an average PC in just one second and can enable DeepSeek’s AI assistant to handle 7,000 conversations per second. The newly-installed module is linked to an existing facility to form a computing cluster designed to support AI-driven applications.

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