In order to achieve the goals of carbon neutrality and reduced carbon emissions, China is increasingly focusing on the development and utilization of renewable energy sources. Among these, ocean thermal energy conversion (OTEC) has the advantages of small periodic fluctuations and large potential reserves, making it an important research field. With the development of the “Maritime Silk Road”, the Xisha Islands in the South China Sea will see a growing demand for electricity, providing the potential for OTEC development in this region. Optimal site selection of OTEC power plants is a prerequisite for developing thermal energy provision, affecting both the construction costs and future benefits of the power plants. This study establishes a scientific evaluation model based on the decision-making frameworks of geographic information systems (GISs) and multi-criteria decision-making (MCDM) methods, specifically the analytic hierarchy process (AHP) for assigning weights, the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) to reclassify the factors, and weighted linear combination (WLC) to compute the suitability index. In addition to commonly considered factors such as temperature difference and marine usage status, this study innovatively incorporates geological conditions and maximum offshore distances of cold seawater based on cost control. The final evaluation identifies three suitable areas for OTEC development near the Xuande Atoll and the Yongle Atoll in the Xisha Sea Area, providing valuable insights for energy developers and policymakers.