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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.

In recent years, the rapid proliferation of generative AI and cloud services has driven a steady expansion in domestic demand for data centers. The power capacity required for IT equipment in Japanese data centers is projected to grow from approximately 2,365 MVA at the end of 2024 to about 4,499 MVA by the end of 2029—a compound annual growth rate (CAGR) of roughly 13.7%. This surge necessitates an urgent, dual-track development of both power and digital infrastructure.

Against this backdrop, the concept of “Watt-Bit Collaboration” (Wat-Bit Renkei) has garnered significant attention. This is a public-private framework aimed at optimizing the synergy between power (“Watt”) and telecommunications/data (“Bit”). The Ministry of Economy, Trade and Industry (METI) and the Ministry of Internal Affairs and Communications (MIC) have already established organizations to promote this initiative, reflecting the national strategic imperative to integrate power infrastructure with the growing demand for data centers.

Integrating Infrastructure: The Promise of Watt-Bit Collaboration

The establishment of the “Public-Private Council for Watt-Bit Collaboration” highlights the necessity for a strategic approach to digital infrastructure that treats power and telecommunications as a single, unified entity. By fostering cooperation between utility companies and IT/telecom firms, the initiative aims to create a balanced design and operational framework for the power, connectivity, and cooling infrastructure essential for stable data center operation.

Research and pilot projects are already underway, focusing on energy supply-demand balancing and peak-time optimization—considering both domestic power grid conditions and global trends. Efforts toward the technical convergence of the energy and data center sectors are rapidly gaining momentum.

The Moves of Power Utilities: Exploration and Implementation

Under these circumstances, some power companies have begun to explore direct involvement in the data center business. For instance, Tohoku Electric Power has launched a GPU cloud service, utilizing container-type data centers to provide cloud infrastructure equipped with high-performance GPUs.

Furthermore, the company has signed a memorandum of understanding with other partners to establish new containerized data centers, with plans to offer GPU server housing services on idle land. These initiatives exemplify a shift where utility companies are stepping beyond mere power supply, venturing into value creation through the provision and operation of data centers.

Information also suggests that other utility companies and related firms are exploring business models that provide power and data center capabilities as an integrated service. As the rapid expansion of AI workloads raises concerns about power security, the role of utility companies is evolving—from traditional suppliers toward becoming integral partners in the broader digital infrastructure ecosystem.

Conversely, TEPCO Holdings has officially stated (as of late 2025) that it has no current plans to enter the data center business directly. The company cites concerns regarding regulatory alignment and the scope of its core business obligations as primary reasons for maintaining this stance.

From “Supplier” to “Co-creation Platform”

Overall, rather than a sweeping trend of utilities unilaterally taking over the data center market, the industry is in a phase of exploring new value creation through strategic partnerships and collaboration. As the race to secure power infrastructure coincides with the growth in data center demand, providers with strengths in energy technology, site selection, and environmental management are increasingly positioning themselves as “co-creation platforms” alongside data center operators and telecommunications firms.

Looking ahead, the next defining trend in the industry will hinge on how utility companies refine their business models and commit to the growth of the data center market while navigating the complex interplay between energy and digital infrastructure.

In recent years, the rise of generative AI and machine learning has dramatically increased the importance of AI-ready data centers as essential platforms for large-scale data processing. Anticipating this transformation, SoftBank Corp. is aggressively driving investment and technological development in next-generation data centers. These initiatives underscore SoftBank’s pivotal role in building the bedrock of our future digital society.

Deepening Data Center Operations through Integration and Synergy

In December 2025, SoftBank resolved to execute an absorption-type split with its wholly-owned subsidiary, IDC Frontier (IDCF). Effective April 1, 2026, SoftBank will assume IDCF’s data center operations and customer contracts for cloud and network services, while transferring specific cloud service functions back to IDCF.

By centralizing management and technical resources within SoftBank itself, the company aims to bolster its development and operational framework, optimizing it for the demands of the AI era. This strategic reorganization is designed to enhance the competitiveness of SoftBank’s AI data centers while creating a foundation that can respond rapidly to evolving market trends.

Innovating AI Infrastructure with “Infrinia AI Cloud OS”

In January 2026, SoftBank unveiled “Infrinia AI Cloud OS,” a proprietary operating system specifically developed for AI data center operations. This software stack provides robust integrated management for large-scale GPU resources and container platforms like Kubernetes.

Going beyond mere hardware provision, Infrinia enables seamless AI workload management across diverse environments and offers APIs for Inference-as-a-Service (IaaS). It is engineered to allow data center and cloud providers to deploy high-performance GPU cloud services in a short timeframe. SoftBank plans to implement this system internally first, with a clear vision for subsequent global expansion.

A Long-Term Strategy Supporting AI-Era Infrastructure

A key differentiator of SoftBank’s strategy is its dual-track approach: optimizing both hardware facilities and the software/systems that run them. Rather than simply building isolated GPU clouds, SoftBank is establishing a flexible and scalable next-generation infrastructure capable of adapting to a wide range of AI processing needs.

Furthermore, the large-scale AI data center project planned for Tomakomai, Hokkaido, is drawing significant attention. Based on the concept of a “Brain Data Center,” this project aims to decentralize AI processing power and energy consumption, realizing a distributed infrastructure model. This strategy is highly regarded not only for meeting the growing domestic and international demand for AI but also for contributing to regional economic revitalization and disaster risk diversification.

SoftBank’s investment and innovation in AI data centers are driven by a multi-faceted approach encompassing software development, organizational integration, and strategic restructuring. These efforts serve as the engine for SoftBank’s leadership in the increasingly competitive landscape of AI-era infrastructure.

KDDI, one of Japan’s leading telecommunications giants, officially commenced operations at its newly established “Osaka Sakai Data Center” on January 22, 2026. This launch marks a significant turning point for the company’s data center (DC) business. After several years without major new facilities, KDDI is pivoting aggressively to capture the surging demand for AI processing power. This move is seen as a tactical masterstroke, positioning KDDI at the heart of Japan’s evolving AI infrastructure landscape.

Sakai Data Center, Osaka

 Rapid Deployment via Site Repurposing

The Osaka Sakai Data Center is situated on the former site of Sharp’s Sakai plant, which KDDI acquired in April 2025. By leveraging the site’s pre-existing, large-scale power and cooling infrastructure, KDDI achieved an exceptionally fast turnaround, launching operations in just about six months. This speed-to-market provides a distinct competitive advantage over rivals facing long lead times for traditional DC construction.

The facility spans four floors with a total floor area of approximately 57,000 square meters. Notably, it is designed for sustainability, powered by 100% renewable energy. To handle high-density computing while maintaining energy efficiency, the center employs Direct Liquid Cooling (DLC) technology.

Optimized for the AI Era

The center is purpose-built for the AI revolution. It houses latest-generation GPU servers, including the NVIDIA GB200 NVL72, optimizing it for both AI training and inference. Furthermore, KDDI plans to use the site as a collaborative hub, offering on-premise deployments of Google’s “Gemini” generative AI models through strategic partnerships.

For enterprise clients, the facility will provide on-demand GPU resources, supporting the social implementation of AI across various sectors. KDDI aims to meet the growing hunger for high-performance computing in data-heavy industries such as pharmaceuticals and manufacturing.

A Legacy of Expertise in a Changing Landscape

KDDI is not starting from scratch; the design and operation of the Osaka Sakai facility integrate over 30 years of expertise, including water-cooling technologies perfected at its Telehouse Shibuya location. This allows the company to balance high availability and stability with the flexibility required for emerging technologies.

The broader trend in Japan shows a resurgence of domestic investment. With SoftBank also advancing large-scale DC projects at former factory sites, it is clear that data centers have transcended their role as mere “telecom infrastructure” to become the essential digital backbone for all industries.

Global Entry and the Shifting Market Dynamics (Global Perspective)

While domestic giants like KDDI and SoftBank are scaling up, the Japanese market is increasingly becoming a magnet for international operators and infrastructure funds. Following in the footsteps of UK-based Colt Data Centre Services, we are seeing a new wave of global players. For instance, Actis recently launched “Epoch Digital,” a specialized platform targeting data center expansion across Asia, including Japan.

Fuelled by AI and cloud demand, investment interest is expanding beyond the Greater Tokyo Area into the Kansai region and core regional cities where power availability and land potential are more favorable.

For international players looking to enter or expand in Japan, success hinges on navigating unique local challenges: securing power allocations, site selection, regulatory coordination, and understanding regional nuances. In this complex environment, specialized organizations like the Digital Infrastructure Lab (DIL)—which focuses on data center site discovery and suitability assessment—will play a pivotal role in bridging the gap between global capital and Japanese infrastructure opportunities.

Goodman, a leading global industrial property group, has long been a powerhouse in Japan’s logistics sector. In recent years, however, the group has been steadily pivoting toward the Data Center (DC) market. By developing cutting-edge digital infrastructure—particularly in Chiba, Ibaraki, and Kanagawa—Goodman is spearheading a new era for Japan’s domestic data center landscape.

Strategic Partnership with STT GDC in Inzai

Inzai City in Chiba Prefecture is a premier data center hub, thanks to its excellent connectivity to Tokyo and highly stable power supply. Leveraging these advantages, ST Telemedia Global Data Centres (STT GDC), a Singapore-based industry leader, is deploying high-capacity facilities within Goodman-developed sites.

In 2025, “STT Tokyo 1″—the provider’s first campus in Japan—commenced operations, delivering approximately 32MW of IT load. The campus is set for further expansion with the planned construction of “STT Tokyo 2,” significantly boosting total processing capacity. This synergy between Goodman’s development expertise and STT GDC’s operational excellence is fast-tracking the rollout of advanced digital infrastructure in Japan.

Massive Campus Expansion in Tsukuba

Goodman is also moving forward with a massive data center campus in Tsukuba, Ibaraki Prefecture. Utilizing the region’s vast land availability, the first facility is scheduled for completion in 2026. The master plan envisions a multi-phase development with the potential to scale up to a 1,000MW-class power supply.

As a “Science City” home to numerous advanced research institutes, Tsukuba is becoming an increasingly attractive location for data centers, fueled by the surging demand for AI and cloud computing services.

Future Outlook and Local Expectations in Sagamihara

In Sagamihara, Kanagawa Prefecture, while no official construction plans have been announced yet, there is significant local anticipation regarding Goodman’s potential entry into the market. With its strong proximity to the Greater Tokyo Area and robust road and power infrastructure, Sagamihara meets all the criteria for a prime DC location. The industry is keeping a close eye on future developments in this area.

A Multi-Regional Strategy Supporting Digital Foundations

Goodman’s evolution from a logistics-focused developer to a digital infrastructure provider marks a significant shift in strategy. From the collaboration with STT GDC in Inzai to the mega-campus in Tsukuba and the potential expansion in Sagamihara, these interconnected regional movements are fortifying Japan’s digital backbone. As these projects mature, Japan’s domestic digital foundation will only grow more resilient.

Entry of Global Players and a Shifting Market Environment

The Japanese market is entering a new phase of activity. Beyond developments led by domestic firms, we are seeing an influx of international telecommunications players and infrastructure funds.

For instance, SC Capital Partners and SC Zeus Data Centers are actively identifying sites near Tokyo with optimal power and land conditions to build their presence. Furthermore, Singapore Telecommunications (Singtel), a dominant force in the Asia-Pacific region, is expected to deepen its engagement with the Japanese market as part of its global digital infrastructure investment strategy.

The entry of these global giants will undoubtedly accelerate development speeds and intensify competition. For operators looking to develop data centers in Japan, navigating unique local challenges—such as land acquisition, power procurement, and regulatory compliance—is more critical than ever.

In this complex environment, specialized consulting organizations like Digital Infrastructure Lab (DIL), which focus specifically on data center site selection and technical due diligence, will play an increasingly vital role in ensuring project success.