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Dumping computer equipment into water is generally not a very good idea. So why does Microsoft is doing this?? !!

Data centers are basically buildings containing various computer equipment that process all of the internet we use. Not only do they consume a lot of energy, most of the energy they consume is spent on the cooling system that prevents the components from overheating.Air conditioning is one of the biggest costs in running data centers. Traditional data centers use as much electricity for cooling. Accordingly, much of the innovation seen in the high-density cloud server space has been to develop data centers that are cheaper to cool and hence cheaper to run. With its much higher heat capacity than air, water has become the coolant of choice, pumped around and between the computers to transport their heat outside.

Last year, Microsoft initiated Project Natiak. In this project, they put a prototype called Leona Philpot into the the Pacific Ocean for 90 days and tested its ability to endure the harsh underwater conditions. It is said that the prototype performed better than expected.

The idea behind this is that by doing so, Microsoft should be able to capitalize on the low temperatures of the bottom at the ocean. Since the mass of the ocean is practically limitless compared to that of the data centers, there will be virtually no harm in doing so.

​Edit:

As suggested by Jessie Goodpasture , Google also uses cold sea water. Here's a video they made of the Hamina (Finland) data center back in 2011.