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With the rapid spread of artificial intelligence (AI), the importance of data centers is increasing. Currently, there is a potential shortage of data centers to support generative AI and the AI of the next few years, and there are challenges such as how to secure the large amounts of electricity consumed by data centers. While companies are making efforts to meet demand by using renewable energy and reducing carbon dioxide emissions, domestic companies tend to be less aware of this issue.

GAFAM companies have been building their own renewable energy power plants.

Companies like Amazon, known as GAFAM, have already entered into long-term contracts with power generators to directly procure renewable energy. They secure renewable energy generation facilities near electricity-consuming facilities such as data centers and use renewable energy in a “local production for local consumption” manner.

Google has announced that it has procured more than 50 renewable energy sources with a total capacity of 5.5 GW. Microsoft has announced contracts for 5.8 GW of renewable energy sources in 10 countries worldwide.

Government considers subsidy system

Meanwhile, the government has announced that it will promote industrial clustering in regions with abundant decarbonized electricity such as renewable energy and nuclear power. A system is being considered to review investment plans by companies and local governments when constructing factories and data centers, and to make projects with a high degree of decarbonization eligible for corporate tax breaks and subsidies.

The Green Transformation (GX) Promotion Act, which sets out the government’s decarbonization strategy, will be amended. Companies will be required to formulate plans specifying the proportion of decarbonized electricity used for facility development.

By making applications with municipalities that meet a certain level of decarbonized electricity for use within the region a condition, the government aims to shift to a corporate location policy focused on reducing environmental impact.

After certification, companies will be eligible for measures such as corporate tax reductions and subsidies for capital investment.

Expectations for a change in corporate awareness towards decarbonization

There is a bias in the regions where decarbonized electricity can be supplied domestically. Regions with a high proportion of decarbonized power sources, exceeding 40%, are limited to Hokkaido, Kansai, and Kyushu in Japan, where power generation facilities such as solar and wind power are widely located. Suitable locations for offshore wind power, which is subject to wind direction, are limited to the offshore areas of Hokkaido, Aomori Prefecture, Akita Prefecture, and Nagasaki Prefecture.

If electricity is transported far from the power plant, transmission losses occur. Transmission network equipment also incurs costs, making the use of electricity from remote locations expensive. Industrial clustering promotes local production for local consumption of electricity and leads to efficient use of energy.

In recent years, there has been active construction of semiconductor-related factories and new data centers in Japan. While electricity consumption is expected to increase, the government aims to achieve net zero emissions of greenhouse gases such as CO2 by 2050.

It is expected that subsidies will encourage companies to become more aware of decarbonization, but it remains to be seen how this will actually play out. We would like to introduce the future situation as well.

Irish government restricts data center development

Ireland’s The Commission for Regulation of Utilities (CRU) has decided to limit the impact by imposing a de facto moratorium on new data center development in the Dublin metropolitan area.

Ireland’s national transmission operator EirGrid said in response that it would only consider new applications for grid connection on a case-by-case basis. The restrictions could reportedly last until 2028.

Martin Shanahan, CEO of Ireland’s Industrial Development Authority (IDA), recently said that new data centers “are unlikely to occur in Dublin and the East Coast at this time.”

Google has asked such Irish regulators not to impose a moratorium on data center development in the country.

In The Commission for Regulation of Utilities (CRU) filing, the company said search and cloud companies must “absolutely” avoid a moratorium on data center development.

Google said such a ban would send a “wrong signal” about Ireland’s digital economy ambitions, and would affect the country’s infrastructure, according to a Freedom of Information request first reported by The Irish Times. It adds that it makes further investment “impossible”.

In the filing, Google called for more transparency about where the Irish network has existing power capacity, as well as being clearer and more open about EirGrid’s projections of data center power usage growth. I think you need to.

Growing Demand for Cloud Computing, Google’s Proposal

Google, which launched its first data center in Ireland in 2012, has proposed a new pricing structure for data center operators who reserve more capacity than they ultimately need or grow to that capacity too slowly. bottom.

“Transmission tariffs can be designed so that consumers who are not seeing increased demand towards maximum reserved capacity will be charged more than consumers who are demonstrating an increase each year.” says.

EirGrid and politicians have previously suggested moving data center development to the west of Ireland (away from Dublin’s constrained areas and closer to renewable energy sources), but Google says this is not a viable solution. I point out that it is not.

“The demand for cloud computing in Dublin is growing. We are unable to provide services.”

Another AWS filing says Ireland has missed opportunities in the past to address supply issues.

“Over the past decade, we have had opportunities to do reinforcement work, prepare the grid for growth and investment, and prepare the grid for more intermittent integration of resources,” he said.

Both the Social Democrats and the People Before Profit parties have been calling for a nationwide moratorium on future data center projects for the past 12 months. The PBP bill was an absolute ban on data centers, liquid natural gas plants and new fossil fuel infrastructure.

In Dublin last month, South Dublin County Council (SDCC) voted to block future data center construction in the county as part of a new development plan.

What is the background behind the Irish government’s moratorium on data center development?

Irish Government Behind Data Center Development Moratorium

The Irish government’s achievement of emissions and renewable energy targets is behind this.

According to EirGrid, data center energy usage is projected to increase by 9TWh by 2030, ranging from 23% to 31% of Ireland’s grid supply in 2030. This comes at a time when the government wants to reduce emissions by 60-80% by increasing the share of renewable energy. At the same time, governments want to decarbonise by moving heating and transportation to electricity, further increasing demand on the grid.

According to The Irish Times, EirGrid has agreed to connect an additional 1.8GW of data centers to the grid, with current peak demand of around 5GW, and a further 2GW of applications ready. That’s it.

The Government Statement on the Role of Data Centers in Ireland’s Enterprise Strategy 2018, published in 2018, emphasized the positive role of data centers in the country’s economic performance. However, it will now be “aligned with sectoral emissions caps and renewable energy targets, concerns about continued security of supply, and demand flexibility measures currently needed. In order to secure it, it will be reviewed. “In addition, further tightening of regulations will be considered,” it is reported.

Will it work or will it backfire?

The Irish government imposes a moratorium on data center development, which is in high demand worldwide. It seems that the moratorium continues while receiving a warning from Google. Will this decision work or will it backfire? We will keep an eye on trends.

NTT DATA Co., Ltd. is working to remote/automate equipment inspection work using robots at the data center “NTT Shinagawa TWINS DATA Building” (hereinafter referred to as “Shinagawa Data Center”) operated by the company. announced that it has confirmed that it is possible to reduce the equipment inspection work that was previously done by about 50%.

From April 2023, NTT DATA will proceed with the introduction of robots to data centers nationwide.

Background of robot introduction

NTT DATA explained that the building management industry, including data centers, is facing a serious manpower shortage, and that facility management work, in particular, is facing a shortage of skilled workers, and that there is a need for labor savings and more efficient work implementation.

Among facility management operations, the company believes that inspection work is highly effective in reducing manpower and that remote/automated operations are feasible through the use of digital technology, and has been conducting verification for practical application at its Shinagawa Data Center.

Overview of Robot Introduction and Changing Checking Tasks

In this initiative, a robot automatically patrols a predetermined inspection route, taking pictures of meters, lamps, and facility exterior, and acquiring environmental data such as odors using sensors, thereby replacing the work of measuring meters, checking lamps, and checking for abnormalities in appearance and unusual odors that had previously been performed by humans.

In this method, a single camera or sensor can be used to inspect multiple locations, and there is no need to modify the current equipment in operation, making it cheaper and simpler to achieve remote/automated operation than other methods such as installing IoT cameras and sensors for each inspection target or converting to smart meters.

The robot used in this project is a next-generation avatar robot “ugo Pro” modified for facility inspection work in collaboration with ugo Corporation, a manufacturer of business DX robots.

In order to capture detailed meter readings, the robot is equipped with a 4K camera with higher image quality than the standard model, and multiple devices such as an odor sensor, microphone, and thermo camera can be mounted on the ugo itself to expand its applications depending on the inspection items.

The robot can be operated using only a PC, and its travel route can be set with no code, making it easy for on-site personnel to use the robot. The robot can switch between automatic traveling and remote control, and can be used not only for automatic inspection work, but also for multiple applications, such as work support from a distance.

These features not only allow the robot to handle a variety of inspection items, but also to expand its applications to include remote work support and construction attendance.

By using robots and sensors to remotely/automatically perform inspection work, not only can work hours be reduced, but also the threshold values for determining abnormalities, which used to rely on human senses, can be quantified to enable detection of abnormalities without relying on skilled workers.

In addition, by making it possible to remotely perform tasks that could only be performed onsite, including work support and construction attendance, it is expected to support flexible work styles and secure new workers.

About the future

In the future, NTT DATA aims to expand the scope of automation to include recording and reporting work that currently requires personnel to perform, and to reduce the time required for inspection work by up to 80% by promoting linkage with meter reading systems and abnormality detection AI.

NTT Data will also work to enhance facility management operations, such as advanced abnormality detection and predictive maintenance of facilities, utilizing data acquired by robots and sensors.

Starting in April 2023, the initiative will be rolled out sequentially to 15 data centers nationwide.

Furthermore, based on the knowledge gained from these efforts, the company aims to offer the service commercially as a remote/automated service for facility inspection operations by the end of FY2023.

For commercial provision, ugo will utilize the new robot “ugo mini” developed by making use of the knowledge obtained through joint verification with NTT DATA to develop remote/automation solutions for facility management operations, from consulting for introduction. NTT DATA provide one-stop support from system construction to operation to solve customer problems.

The day of full-scale deployment of robots for facility inspection operations at data centers is eagerly awaited to help resolve the serious labor shortage.

On November 24, 2022, Kyocera Communication Systems Corporation (KCCS) announced that KCCS will begin construction of a zero-emission data center in Ishikari City, Hokkaido, Japan, in December 2022, with the data center scheduled to open in the fall of 2024.

In 2019, KCCS announced plans for a zero-emission data center in Ishikari, Hokkaido, which will operate on 100% renewable energy.

Subsequently, due to a change in the originally planned baseload power supply plan, the power supply configuration and data center design were revised, and now the company has announced the start of construction and opening schedule.

The data center to be constructed will be located in the Ishikari Bay New Port area of Ishikari City, Hokkaido, with a site area of approximately 15,000 square meters, total floor space of approximately 5,300 square meters (at the time of opening), and 400 racks (at the time of opening).

Toward Achieving Carbon Neutrality by 2050

In Japan, local production and local consumption of renewable energy is an important theme for achieving carbon neutrality (virtually zero greenhouse gas emissions) by 2050, as is the decentralization of data centers in the “Digital Rural City State Concept” being promoted by the government. The introduction of “real renewable energy,” which reduces environmental impact to plus or minus zero through the purchase of environmental values such as non-fossil certificates, is progressing.

To this end, expansion of “direct use of renewable energy” is also needed to further increase the amount of renewable energy introduced.

However, it is not easy to achieve “direct use of renewable energy” in large-scale demand facilities such as data centers, as securing stable renewable energy power and economic efficiency is a challenge.

Ishikari City has been selected as a “Decarbonization Leading Region (1st round)” by the Ministry of the Environment in a publicly solicited project to achieve carbon neutrality by 2050.

In addition, KCCS has formulated the “Redesigning the Region through Local Production of Renewable Energy and Decarbonization,” a measure aimed at zero carbon, and is aiming for a decarbonized industrial cluster by supplying renewable energy to the data center cluster and surrounding facilities in the Ishikari Bay New Port area.

The zero-emission data center will utilize the abundant renewable energy sources in the region, and a new solar power plant owned by KCCS will be built in the vicinity of the data center to directly utilize those renewable energy sources.

In addition, in order to operate the data center while simultaneously ensuring the “reliability,” “environmental friendliness,” and “economic efficiency” of multiple renewable energy sources, KCCS will build its own power supply and demand control mechanism utilizing storage batteries and AI technology.

KCCS aims to demonstrate the possibility of local production for local consumption of renewable energy through the “data center business operated on 100% renewable energy” in Ishikari City, as well as to contribute to regional revitalization through decentralized data storage in Japan and the creation of jobs for data center technicians and energy-related engineers. The project also aims to contribute to regional revitalization by creating jobs for data center technicians and energy-related engineers.

Expectations are high for the opening of a “zero-emission data center” to achieve carbon neutrality by 2050.

Sorry, this entry is only available in JA.

Sorry, this entry is only available in JA.

Sorry, this entry is only available in JA.

Sorry, this entry is only available in JA.

The 2025 data center market was a year that saw the entry of more diverse players than ever before, resulting in a substantial increase in the scale of projects. Driven by the rapid adoption of Generative AI (GenAI) and the expansion of cloud usage, the Japanese market once again attracted significant attention from both domestic and international operators, who recognize it as a market with promising medium- to long-term growth.

A defining characteristic throughout this year was the broadening scope of participants. While the market was previously dominated by major domestic operators and a few foreign companies, 2025 saw players with diverse backgrounds simultaneously increasing their presence. These included real estate developers, infrastructure investment funds, telecommunications companies, and specialized data center operators with extensive track records overseas.

Furthermore, the nature of the facilities themselves evolved. Development went beyond simple colocation offerings, progressing toward high-power, high-density designs optimized for AI workloads, and large-scale, campus-style developments targeting hyperscalers. It is fair to say that the market as a whole experienced a year where “diversification” and “scaling up” proceeded in parallel.

Significant shifts were also observed in terms of location. In addition to the established areas of the greater Tokyo and Kansai regions, there was a continuous wave of expansion into new regions and secondary major cities, leading to a much wider geographic distribution of data center locations across Japan.

Key Moves by Data Center Operators Symbolizing 2025

ESR’s move serves as an emblematic example of the 2025 market trends. Through partnerships with Stack Infrastructure and Colt DCS, ESR expanded into a new area: Osaka’s Nanko district. This was a symbolic development, showing that the options for data center locations in the Kansai Area have broadened.

The collaboration between Gaw Capital and DayOne was another characteristic move of 2025. This data center operator, which has Singaporean capital backing but is headquartered in China, made its substantive first entry into the Japanese market this year. It can be said that 2025 was the year when the presence of Chinese-affiliated data center operators, including GDS, became more visible in Japan.

Furthermore, global specialized data center operators like FLOW Digital Infrastructure and EdgeConneX also entered the Japanese market for the first time in 2025. The fact that a succession of operators with extensive operational expertise from overseas markets established a foothold in Japan indicates a further progression in the market’s maturity.

Global Compute Infrastructure (GCI) entered the Japanese market by expanding into Kitakyushu, concretely demonstrating the potential for data center development in regional cities. Additionally, Princeton Digital Group (PDG) proceeded with its first large-scale data center development in Saitama City, boosting its profile as a major project in the greater Tokyo metropolitan area.

2025 was a year when diverse players introduced their respective strengths, bringing new options and greater breadth to Japan’s data center market. These developments offer crucial insights for considering the future form of data centers, location strategies, and business models in the years to come.

The landscape surrounding data centers is undergoing a significant transformation, driven by the widespread adoption of Generative AI (GenAI). Historically, the main challenges for data centers have often centered around the increasing power demand and the need to secure power infrastructure. However, in recent years, attention is increasingly being drawn to the trend in construction costs as an additional key concern.

In this context, the latest survey published by Turner & Townsend compared data center construction costs across major global cities, highlighting that Japanese cities exhibit a remarkably high cost level. Tokyo, in particular, is noted for having one of the highest construction costs per watt globally, which distinctly underscores the unique characteristics of the Japanese market.

As the demand for infrastructure supporting Generative AI expands, data center construction costs are becoming an element that can no longer be ignored when making future investment decisions.

Why Construction Costs Are High

The survey points to several factors contributing to the high level of data center construction costs in Japan. One major driver is the increased sophistication of facility requirements necessary to support GenAI. To accommodate high-density server deployments, the specifications for power supply equipment and cooling systems must be elevated, consequently driving up the overall construction expenditure.

Furthermore, the difficulty in securing skilled personnel who specialize in crucial areas such as power, air conditioning (HVAC), and IT equipment is cited as another factor pushing costs upward. Compounded by a structure that is highly sensitive to procurement of materials from overseas and fluctuations in foreign exchange rates, these complex factors are believed to be reflected in Japan’s high construction cost levels.

Key Trends to Watch

Given the continued growth of the Generative AI market, data center demand is expected to remain robust. Consequently, construction costs are not anticipated to drop sharply in the short term; rather, they are likely to remain at a high level.

In response to this situation, however, there are emerging efforts to optimize costs through innovations in construction methods and project management. Construction costs are poised to become an even more critical consideration—alongside power availability and location—in the future.

The nature of the infrastructure supporting data centers will continue to evolve in the age of Generative AI. Within this dynamic environment, viewing market trends through the lens of construction costs offers a vital piece of information for understanding the future trajectory of the data center industry.

SoftBank is undergoing a significant transformation, moving beyond its traditional role as a telecommunications carrier to become a key player in building the social infrastructure for the AI era. Central to this evolution is a next-generation infrastructure concept that integrates communication and computing capabilities, centered around strategically distributed AI data centers across Japan. The company is shifting away from the conventional model of concentrating massive processing power in select major cities, aiming instead to establish an environment where advanced AI processing is accessible anywhere in the country.

A New Model Emerges with Distributed AI Data Centers

SoftBank emphasizes a distributed computing network that seamlessly links large-scale AI hubs, such as the “Brain Data Center,” with “Regional Brain” centers and even edge AI servers at the base station level. This distributed approach allows AI computations to be performed at the location closest to where the processing is needed. This innovation can significantly reduce response times, cutting what previously took hundreds of milliseconds down to just tens of milliseconds.

This level of immediate responsiveness is crucial for fields demanding real-time performance, including disaster prevention systems, smart factories, road monitoring, and autonomous driving, delivering immense value in these critical areas.

Furthermore, the company is actively pursuing concrete data center construction projects. In Tomakomai, Hokkaido, an AI data center is being built on a vast site of approximately 700,000 square meters, planned as a large-scale facility prioritizing the use of renewable energy. In Sakai City, Osaka, development of a 150 MW-class hub is underway, utilizing a former factory site, with a future concept to expand its capacity to 400 MW. These initiatives are expected to significantly bolster Japan’s domestic AI processing foundation.

Cloud Enhancement and Regional Revitalization

The enhancements go beyond hardware, extending to the cloud and AI service platforms. SoftBank is partnering with Oracle to advance the development of a sovereign cloud infrastructure utilizing domestic data centers. This effort is creating an environment where businesses and local governments can leverage AI while ensuring critical data remains within Japan—a matter of growing significance amid rising interest in data sovereignty.

Moreover, the distributed AI data centers directly contribute to the digitalization of local communities. Unlike the past, where AI utilization tended to concentrate in urban areas, this new framework makes advanced AI processing readily available to local governments and businesses nationwide. This accessibility is expected to stimulate regional economies. Applications are anticipated across various sectors, including healthcare, disaster management, logistics, and manufacturing, tailored to the specific needs of each region.

Naturally, data center construction involves numerous challenges, such as securing power, cooling facilities, and land negotiations. However, SoftBank has demonstrated success in achieving rapid agreements through swift consultations with local governments. This suggests that the importance of developing infrastructure to support the AI society is a shared understanding among local authorities as well.

In summary, SoftBank’s efforts clearly demonstrate its commitment to building the new social infrastructure indispensable for the AI era. By deploying its unique foundation—which merges telecommunications, AI, and cloud technology—across the country, the company is poised to play a crucial role in underpinning the development of domestic industries. Future developments are highly anticipated.

A large-scale data center project currently underway in Kagoshima Prefecture is making waves across the industry.

The proposed site is located near the Kyushu Electric Power Sendai Nuclear Power Station, a feature that promises a highly stable baseload power supply. As the sophistication of AI development and semiconductor manufacturing accelerates, securing reliable power has become the most critical challenge for data centers. Locating a facility in direct proximity to a nuclear power plant is a unique strategic differentiator—one rarely seen in recent Japanese construction projects.

Furthermore, Kagoshima offers distinct geographic advantages:

• Geological Stability: The area is considered to have a relatively low risk of earthquakes compared to other Japanese regions.

• Climate: Temperatures are generally more stable than on the main island (Honshu), contributing to better cooling efficiency.

With local governments actively courting digital infrastructure investment, interest from both domestic and international operators is surging.

The “Watt-Bit” Collaboration: A New Possibility

Beyond the location, this project is garnering attention as a potential pioneer for “Watt-Bit” collaboration.

“Watt-Bit” refers to the convergence of energy (Watts) and digital data (Bits). In this context, it represents an initiative to optimize data center power usage in real-time using advanced, AI-driven power management technologies. This approach is expected to deliver:

• Significant reduction in electricity costs.

• Better adjustment of supply-demand balance.

• More sophisticated integration of renewable energy sources.

The Kagoshima project aims to combine a stable nuclear power source with this next-generation operational model. If successful, it could establish a new standard for data centers in Japan.

From “Consumer” to “Contributor”　

There is also a broader vision to integrate this facility with regional smart grids.

By doing so, the data center could contribute to disaster resilience and promote the local consumption of locally produced energy. This marks a potential turning point where data centers evolve from facilities that simply “consume massive amounts of power” into “intelligent infrastructure that contributes to the regional grid.”

Kagoshima’s Environmental Advantage and Future Outlook

Kagoshima offers ample land availability—a critical factor for data centers requiring vast footprints. Additionally, the Kyushu region is rapidly developing into a semiconductor industry cluster (often called “Silicon Island”), suggesting strong potential for synergy with related industries.

Kagoshima is steadily increasing its presence as a “New Technology Hub in Southern Japan,” driving the broader digital industry forward.

With these compounding factors—geographic stability, power security, and technological innovation—the Kagoshima plan is more than just a construction project. It is being watched closely as a symbolic initiative that could reshape the future of Japan’s digital infrastructure. Depending on how it unfolds, it may well provide the blueprint for the next generation of national digital foundations.