Drogue to Launch Ocean-Powered Floating Data Centers Using Thermal Energy Conversion

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Startup Drogue plans to deploy floating data centers powered by ocean thermal energy conversion, with a prototype ship scheduled for sea trials by early 2028, aiming to meet the surging AI computing demand with sustainable ocean-based energy.

Drogue, a startup established six months ago in Washington, D.C., is developing an innovative solution to power data centers by harvesting heat from the ocean. By leveraging ocean thermal energy conversion (OTEC) technology, the company aims to operate data centers aboard floating vessels, addressing the pressing need for faster and greener AI computing infrastructure.

Founder and CEO Sam Sipe, a former U.S. Navy pilot familiar with the ocean's vast energy potential, explains that the oceans have absorbed significantly more heat due to global warming—about 5.8 million terawatt-hours of extra energy each year—far exceeding global human energy consumption. This energy is harnessed by exploiting the temperature difference between warm surface waters and cold deep-sea waters, around 39°F (4°C).

Drogue’s system draws warm surface water to cool servers on board, then uses the heated water to boil ammonia—a chemical with a boiling point of -28°F—creating gas that powers turbines to generate electricity. The gas is subsequently condensed using the cold water drawn from depths of 1,000 meters, completing a closed loop. This method, an adaptation of the OTEC concept first developed in the 1950s, offers a renewable, stable energy source for data centers at sea.

The startup has designed a multi-megawatt prototype system intended to be installed on an oceangoing ship, with plans to deploy it in early 2028. Future iterations will incorporate floating platforms similar to offshore oil rigs for longer-term installations. Drogue has secured $20 million in funding from investors including XYZ Venture Capital, Toyota Ventures, and others, indicating strong financial backing.

A critical advantage of Drogue’s approach is circumventing the lengthy timelines typical of terrestrial data center development—often 8 to 10 years—caught up in real estate and utility grid planning. The rapidly growing AI sector demands much faster deployment, which floating data centers powered by self-sustaining ocean energy can provide.

Regulatory progress includes preliminary approval from the American Bureau of Shipping, ensuring compliance with maritime safety standards. Data transmission costs are minimized by proximity to undersea cables, making floating data centers both practical and efficient.

By situating data centers directly on ocean platforms powered by renewable thermal energy, Drogue is addressing the growing energy demands of AI computing sustainably and innovatively. This development may pave the way for scalable, environmentally friendly data infrastructure independent of traditional power grids or fossil fuels.