That is exactly what weather simulations do. Same most other kinds of hydrodynamic simulations (simulation of gas or fluid flows).

The thing is: you need the state at t-1 of all your neighbors. Then you can do a small timestep to get from t-1 to time t. And then you need the NEW state of your neighbors. That requires a fast interconnect. Which HPC machines have, unlike most clouds or commodity clusters.

In other words, yes it is parallelizable, but not trivially so, because the different grid points are coupled.