Microsoft says underwater data centers would be ideal in many ways. First, they can help reduce cooling costs and emissions from a regular data center by taking advantage of the lower surrounding temperatures for cooling, though the capsule doesn’t actually consume water for cooling.
An underwater capsule can also be built and deployed within 90 days. That’s a great turnaround time if your cloud service needs extra help during a major event like the Super Bowl, when tons of users want to access their data in a specific location. A Project Natick vessel could also be dropped off the coast of a disaster zone to enable faster access to data when it counts.
Finally, about half the world’s population lives within 124 miles (200 kilometers) of the ocean. Placing datacenters offshore brings them closer to more users, which in turn would make latency (the time it takes data to transfer from a server to your PC or smartphone) goes down dramatically.