US startup Drogue plans to power floating data centers with ocean heat
Washington, DC-based startup Drogue has raised $20 million to develop a system that generates electricity for data centers from ocean heat. The first prototype is due to go to sea on a ship in early 2028.
Drogue, a US startup that has kept a low profile until now, is developing technology to power data centers aboard floating vessels using heat from the ocean. The company was founded just six months ago in Washington, DC, and told TechCrunch it has already raised $20 million. Investors include XYZ Venture Capital, Toyota Ventures, Tamarack Global, Dream, FDVC, Garuda Ventures, Flexcap, Boost VC and Slow Ventures.
Co-founder and CEO Sam Sipe says the aim is to help data center developers deploy servers on timelines that suit the AI industry. In his words, the sector traditionally plans over 8 to 10 years, including coordination with utilities and grid operators, while AI demand has grown tenfold in the past three years.
How the system works
The technology is based on ocean thermal energy conversion (OTEC), developed in the 1950s. It works like a heat pump in reverse: instead of using electricity to move heat, it uses a temperature difference to produce power. Warm surface water first cools the data centers, then is used to boil ammonia. The ammonia gas spins a turbine to generate electricity, and a condenser turns it back into a liquid using cold water drawn from 1,000 meters deep. The ammonia then returns to the start of the sealed loop.
The basic concept was tested in the 1980s but set aside. Sipe says manufacturing techniques for pipes and heat exchangers have improved considerably since then.
Next steps
Drogue has designed a multi-megawatt prototype that will be installed on a conventional ocean-going ship and sent to sea in early 2028. Later versions will be built on floating structures resembling offshore oil platforms. The company has received preliminary "approval in principle" from the American Bureau of Shipping, which sets and checks ship safety standards, and is now buying its first ship.
