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Japan’s Data Center
Investment Opportunity
for Global Infrastructure Investors

Digital Infrastructure Lab provides end-to-end advisory
and execution support for data center investment in Japan,
from site identification to operational launch.

Japan’s Expanding Digital Infrastructure Opportunity

Japan is entering a structural growth phase in hyperscale and edge data center development, driven by AI deployment, cloud adoption, enterprise digital transformation, and evolving regulatory frameworks.

Global investors seeking stable, long-term infrastructure returns are increasingly evaluating Japan as a strategic market.

Digital Infrastructure Lab positions capital to access high-quality data center opportunities through disciplined site selection, regulatory navigation, and ESG-aligned development strategy.

$14B
Market Growth

Japan’s data center market continues to expand with strong demand from hyperscale operators.

AI & Cloud
Expansion

AI workloads and enterprise cloud adoption are accelerating hyperscale demand.

4 GW Capacity
by 2030

Japan’s data center capacity is projected to double by 2030.

20+ international submarine cables

Japan is a strategic connectivity hub for Asia-Pacific digital infrastructure.

mission mission

End-to-End Data Center
Investment Support

Supporting global investors across the full lifecycle of data center investment in Japan.

Strategic Site
Identification

Identifying optimal land and power availability for scalable data center development in Japan.

Technical & Regulatory
Due Diligence

Comprehensive technical review and regulatory assessment to reduce development and investment risks.

ESG & Energy Optimization

Aligning infrastructure design with ESG standards, renewable energy sourcing, and efficiency planning.

Investment Structuring

Structuring capital participation and project frameworks tailored for global infrastructure investors.

Capital-Execution Bridge

Connecting international capital with local development partners and operational expertise.

Risk-Mitigated Approach

Implementing disciplined feasibility analysis and phased execution strategies to minimize project risk.

Why Digital Infrastructure Lab

Local Market Intelligence

Deep understanding of Japan’s land acquisition dynamics, zoning frameworks, and
regulatory processes.

Integrated ESG Alignment

Infrastructure planning designed to meet global ESG standards and institutional
reporting requirements.

Capital-Execution Bridge

Alignment between international investors and domestic infrastructure stakeholders.

Risk-Mitigated Approach

Structured feasibility analysis and phased execution planning to reduce uncertainty.

ESG-Aligned Infrastructure Strategy

Sustainable digital infrastructure requires measurable impact.

DIL integrates:

  • Renewable energy sourcing strategies
  • Carbon reduction pathway analysis
  • Energy efficiency optimization
  • Transparent governance frameworks
  • Long-term community alignment considerations

We support infrastructure investments that balance financial performance with
environmental responsibility.

Our Structured
Investment Framework

Market Intelligence
& Feasibility Analysis

Data-driven evaluation of
demand, power capacity,
and site viability.

Site Control &
Risk Assessment

Land strategy development,
regulatory review, and
infrastructure risk analysis.

Investment
Structuring

Capital coordination,
stakeholder alignment, and
execution roadmap design.

Development &
Launch Coordination

Oversight support through
development milestones to
operational readiness.

Institutional-Grade Advisory
with Local Execution Insight

Digital Infrastructure Lab combines infrastructure expertise,
regulatory familiarity, and market access to support disciplined
investment decisions in Japan’s data center sector.

We serve investors, developers, and infrastructure stakeholders
seeking structured market entry and risk-managed expansion.

Partner with Us in Japan’s Digital Infrastructure Expansion
Explore structured opportunities in Japan’s growing data center market.

Latest Insights on Japan Digital Infrastructure

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  • TOPICS & NEWS
  • Founder Message
  • ESG + DC
Connecting Ishikari, Hokkaido, to Otemachi, Tokyo via IOWN: A New Frontier for Decentralized Data Centers TOPICS & NEWS

2026.08.18

Connecting Ishikari, Hokkaido, to Otemachi, Tokyo via IOWN: A New Frontier for Decentralized Data Centers

An initiative is underway to connect Ishikari in Hokkaido with Otemachi in Tokyo using NTT’s next-generation communication network, IOWN (Innovative Optical and Wireless Network). Hokkaido has long attracted attention as a key hub for regional data center decentralization due to its vast land, cool climate, and access to renewable energy. However, network latency caused by the physical distance from major metropolitan areas like Tokyo has remained a key operational hurdle.

 

The deployment of IOWN is drawing significant interest as a breakthrough that lowers this “distance barrier,” opening up new possibilities for Hokkaido’s data centers to integrate seamlessly with urban IT infrastructure.

 

Why Ishikari, Hokkaido, Is a Prime Data Center Location

 
Ishikari has established itself as a pioneer in green hosting, led by SAKURA internet’s flagship data center and Tokyu Land Corporation’s renewable-energy-powered facilities. Hokkaido offers natural advantages for data centers: ample land, reduced cooling loads thanks to lower ambient temperatures, and ready access to clean power.

 

However, as AI adoption drives an explosion in data volume, processing power alone is no longer enough. The speed and latency of the networks connecting these facilities have become equally critical. This is where IOWN comes in.

 

Linking Ishikari to Otemachi with IOWN

 
Tokyu Land Corporation has announced plans to connect its “Ishikari Renewable Energy Data Center No. 1” to Otemachi, Tokyo, using NTT East’s IOWN All-Photonics Network (APN). Targeted for deployment in August 2026, this project marks a milestone implementation of IOWN between Hokkaido and Tokyo’s central financial district.

 

In a parallel effort, NTT East, SAKURA internet, and Equinix Japan are collaborating to connect Ishikari and Tokyo via IOWN APN to test and validate distributed AI infrastructure environments.

 

While these are separate initiatives, both share a common core vision: connecting regional compute resources with urban network hubs through high-speed, ultra-low-latency links. As IOWN enhances network performance, operating models where compute workloads reside in Hokkaido while serving real-time applications in Tokyo become highly practical.

 

Network Infrastructure Driving Regional Data Center Decentralization

 
The Ishikari–Otemachi link does more than just boost the property value of Hokkaido data centers; it serves as a powerful catalyst for national data center decentralization. As IOWN network coverage expands across Hokkaido, it will likely unlock new opportunities in emerging hubs beyond Ishikari, such as Tomakomai and Chitose.

 

Data center decentralization is evolving from simply “relocating facilities to the countryside” to strategically “positioning compute resources regionally and linking them via ultra-high-speed networks to cities.” As the foundational compute layer for the AI era takes shape, the ongoing rollout of IOWN between Hokkaido and Tokyo will be a major trend to watch.

Read more
What is a “Neocloud”? Inside SoftBank’s Push for Next-Generation AI Infrastructure TOPICS & NEWS

2026.08.17

What is a “Neocloud”? Inside SoftBank’s Push for Next-Generation AI Infrastructure

As generative AI accelerates worldwide, demand is surging for specialized computing capacity capable of handling massive AI workloads. Emerging at the center of this transition is a new category of infrastructure provider: the neocloud.

 

Unlike traditional hyperscale cloud platforms built to host general-purpose applications like corporate databases and web services, a neocloud is a purpose-built platform designed specifically for high-performance AI tasks, such as large-scale model training and inference. By integrating dense clusters of top-tier GPUs with tailored AI software, neoclouds deliver the extreme compute power required by modern AI architectures.

 

SoftBank Accelerates Its Neocloud Strategy

 

In Japan, SoftBank is aggressively stepping up its neocloud investments. In May 2026, the company unveiled its “AI Data Center GPU Cloud”—a unified platform combining proprietary management software, Infrinia AI Cloud OS, with high-density GPU infrastructure.

 

Scheduled for launch in October 2026, the platform leverages state-of-the-art hardware such as NVIDIA’s GB200 NVL72 to cover the full AI lifecycle, from data processing and training to real-time inference. By centralizing GPU cluster management and workload orchestration, SoftBank aims to drastically reduce the operational friction companies face when building AI development environments.

 

The Convergence of Neoclouds and Next-Gen Data Centers

 

Scaling a neocloud business requires much more than simply racking GPUs; it depends on a tight integration of underlying facilities, high-capacity power, and advanced cooling technologies.

 

A prime example is SoftBank’s flagship AI data center currently under development in Tomakomai, Hokkaido. Slated to open in FY2026, the campus is projected to expand to roughly 700,000 square meters with a total power capacity exceeding 300 MW. Designed to run on 100% locally produced renewable energy, this facility will support commercial generative AI development while also providing computing resources to universities, research institutes, and enterprises.

 

Further expanding this vision internationally, SoftBank Group and SoftBank Corp. announced in July 2026 the establishment of SB Neo in the United States. Aiming to roll out neocloud services for US enterprises starting in FY2027, SB Neo plans to scale incrementally on top of a massive 10 GW energy and AI infrastructure portfolio developed across the group.

 

As these moves show, the neocloud is evolving beyond a basic GPU-as-a-service model into a fully integrated stack spanning facilities, power, liquid cooling, high-speed networking, and orchestration software. The strategic choices made by neocloud operators will heavily influence the growth trajectory and site selection for future data centers globally.

 

Pure-Play Neoclouds Gain Global Traction—and Eye Japan

 

Outside Japan, dedicated neocloud providers are already asserting immense influence. US-based CoreWeave, the leading pure-play AI GPU cloud provider, successfully went public in 2025 following a string of landmark deals with major AI developers. Other fast-growing players include Europe’s Nebius, alongside US-based Lambda and Crusoe, all of which are actively securing power capacities that rival established hyperscalers.

 

These global neocloud giants are increasingly turning their attention toward Japan. In March 2026, GPU cloud provider GMI Cloud partnered with Wistron to announce a massive $12 billion AI infrastructure plan in Kagoshima Prefecture with a target capacity of 1 GW. If global neocloud players accelerate their market entry into Japan, it will significantly reshape local data center demand and site development trends.

 

The neocloud landscape is set to scale rapidly and diversify both in Japan and internationally. We will continue to track these global operators and their expansion into the Japanese market—stay tuned for further updates.

Read more
SK Group Outlines Plans for AI Data Center in Japan: Key Takeaways for the Domestic Market TOPICS & NEWS

2026.07.27

SK Group Outlines Plans for AI Data Center in Japan: Key Takeaways for the Domestic Market

As the adoption of generative AI accelerates globally, the race to build out robust AI infrastructure is intensifying. Japan is experiencing a major surge in data center development to meet this rising demand. Adding to this momentum is a high-profile potential move by South Korea’s SK Group: a plan to build an AI data center right here in Japan.

 

SK Group is one of South Korea’s premier business conglomerates, spanning semiconductors, telecommunications, and energy, with a global presence that rivals Japan’s top corporations. In market capitalization, the group’s valuation frequently matches Japan’s leading enterprise ranks—at times even rivaling Toyota Motor Corporation depending on market fluctuations. That a global powerhouse of this scale is targeting Japan for its AI infrastructure footprint has naturally sent ripples through the domestic market.

 

SK Group Chairman Chey Tae-won revealed that discussions are underway with Japanese corporate partners to build a next-generation “AI Factory” in Japan. If realized, this would mark the overseas debut of the group’s core AI infrastructure strategy, bringing significant change to Japan’s data center landscape.

 

Planning a Massive Infrastructure Hub in Japan

 

SK Group has positioned AI at the absolute center of its growth strategy, anchored by SK Hynix—the world leader in High Bandwidth Memory (HBM) essential for AI processing.

 

While the group is currently constructing a large-scale AI data center in South Korea in partnership with Amazon Web Services (AWS), it aims to export this proven blueprint to Japan. Chairman Chey indicated that the group is considering candidate sites with robust power supplies and ample land suitable for constructing a gigawatt-scale AI factory.

 

Unlike traditional data centers, an “AI Factory” is an advanced computing infrastructure specifically designed for training and running inference on complex AI models. A key differentiator of SK’s design is the close integration of SK Hynix’s HBM with NVIDIA GPUs to achieve high performance with optimal power efficiency.

 

Shift in Japan’s Data Center Landscape

 

Driven by the rapid adoption of generative AI across industries, domestic players like NTT Group are aggressively building out AI-ready data center capacity. Against this backdrop, having a world-class semiconductor and AI powerhouse like SK actively exploring entry into Japan carries huge strategic weight.

 

SK Group’s AI Factory vision goes beyond erecting physical real estate. It represents a unified strategy combining AI services, cutting-edge semiconductors, and telecom infrastructure. This move opens up high-impact opportunities for collaboration with Japanese companies and could substantially elevate Japan’s AI capabilities. Furthermore, a project of this scale promises strong spillover effects for adjacent industries, including power systems, advanced cooling tech, and optical networking.

 

To meet soaring demand, Japan’s data center sector is moving toward high-density power design and geographic decentralization outside traditional urban centers. SK Group entering the mix as a new catalyst will not only drive market competition, but also significantly accelerate the overall development of Japan’s national AI infrastructure.

 

A Major New Partner in the AI Era

 

In the AI era, data centers have evolved from mere computing and storage facilities into vital national infrastructure that underpins industrial and economic power. Consequently, strategic moves by global players directly shape the local ecosystem.

 

SK Group’s proposed AI Factory project in Japan has the potential to mark a turning point for the domestic data center market. As concrete plans and corporate partnerships continue to develop, this will remain a key story for the industry to watch closely.

Read more
NVIDIA’s Earnings and “AI Factory” Vision Highlight Massive Growth Potential in the Data Center Market

2026.07.13

NVIDIA’s Earnings and “AI Factory” Vision Highlight Massive Growth Potential in the Data Center Market

Driven by the rapid adoption of AI technology, the global data center market is undergoing a major transformation. At the center of this shift is NVIDIA, which commands a massive share of the AI GPU market. In its Q1 FY2026 earnings report, NVIDIA once again demonstrated the sheer strength of AI demand, posting total revenue of $81.615 billion (up 85% year-over-year) and data center revenue of $75.2 billion (up 92% year-over-year).

 

A key pillar of NVIDIA’s forward-looking growth strategy is its “AI Factory” vision. This concept is drawing significant attention because it fundamentally redefines the role of data centers, making it a crucial concept for understanding future market expansion.

 

NVIDIA’s Growth Fueled by Surging AI Demand

 

NVIDIA’s stellar performance reflects the skyrocketing global demand for high-performance GPUs, spurred by the rise of generative AI and AI agents. The company also issued strong revenue guidance for the next quarter, signaling that the AI market’s upward trajectory is set to continue.

 

This demand extends far beyond standalone GPUs; it is reshaping the entire data center infrastructure required to run AI efficiently. Training and running inference on large-scale AI models requires more than just powerful servers—it demands an advanced, holistic infrastructure that includes high-speed networking, stable power supplies, and highly efficient cooling systems.

 

Consequently, the expanding AI market is expected to serve as a powerful catalyst for growth across all data center-related industries.

 

Redefining Data Centers: The AI Factory Vision

 

NVIDIA’s “AI Factory” concept shifts the perception of a data center from a traditional facility that merely stores and processes data to a “factory that manufactures intelligence.” It is called an AI factory because it continuously generates value by running inference and producing massive volumes of tokens.

 

Realizing this vision requires upgrading every aspect of data center infrastructure, including high-density GPU server racks, advanced cooling technologies, efficient power management, and network optimization. In short, the AI factory is not just a marketing buzzword; it represents a concrete roadmap for next-generation infrastructure development.

 

Furthermore, this vision is already moving into practical deployment. Through partnerships with companies like Dell Technologies, turnkey solutions that integrate GPU servers, storage, networking, and rack systems are already being rolled out.

 

Infrastructure Expansion Driving Market Growth

 

As AI adoption spreads across diverse industries, the infrastructure supporting it becomes increasingly critical. NVIDIA’s robust earnings serve as a clear indicator of just how massive this demand is.

 

Moving forward, market growth will not be limited to chips and GPUs. We can expect surging demand across the entire data center ecosystem, including power infrastructure, cooling systems, and networking equipment. The widespread adoption of the AI factory model will not only accelerate the growth of the data center market but also drive development across a broad range of related industries.

Read more
Connecting Ishikari, Hokkaido, to Otemachi, Tokyo via IOWN: A New Frontier for Decentralized Data Centers TOPICS & NEWS

2026.08.18

Connecting Ishikari, Hokkaido, to Otemachi, Tokyo via IOWN: A New Frontier for Decentralized Data Centers

An initiative is underway to connect Ishikari in Hokkaido with Otemachi in Tokyo using NTT’s next-generation communication network, IOWN (Innovative Optical and Wireless Network). Hokkaido has long attracted attention as a key hub for regional data center decentralization due to its vast land, cool climate, and access to renewable energy. However, network latency caused by the physical distance from major metropolitan areas like Tokyo has remained a key operational hurdle.

 

The deployment of IOWN is drawing significant interest as a breakthrough that lowers this “distance barrier,” opening up new possibilities for Hokkaido’s data centers to integrate seamlessly with urban IT infrastructure.

 

Why Ishikari, Hokkaido, Is a Prime Data Center Location

 
Ishikari has established itself as a pioneer in green hosting, led by SAKURA internet’s flagship data center and Tokyu Land Corporation’s renewable-energy-powered facilities. Hokkaido offers natural advantages for data centers: ample land, reduced cooling loads thanks to lower ambient temperatures, and ready access to clean power.

 

However, as AI adoption drives an explosion in data volume, processing power alone is no longer enough. The speed and latency of the networks connecting these facilities have become equally critical. This is where IOWN comes in.

 

Linking Ishikari to Otemachi with IOWN

 
Tokyu Land Corporation has announced plans to connect its “Ishikari Renewable Energy Data Center No. 1” to Otemachi, Tokyo, using NTT East’s IOWN All-Photonics Network (APN). Targeted for deployment in August 2026, this project marks a milestone implementation of IOWN between Hokkaido and Tokyo’s central financial district.

 

In a parallel effort, NTT East, SAKURA internet, and Equinix Japan are collaborating to connect Ishikari and Tokyo via IOWN APN to test and validate distributed AI infrastructure environments.

 

While these are separate initiatives, both share a common core vision: connecting regional compute resources with urban network hubs through high-speed, ultra-low-latency links. As IOWN enhances network performance, operating models where compute workloads reside in Hokkaido while serving real-time applications in Tokyo become highly practical.

 

Network Infrastructure Driving Regional Data Center Decentralization

 
The Ishikari–Otemachi link does more than just boost the property value of Hokkaido data centers; it serves as a powerful catalyst for national data center decentralization. As IOWN network coverage expands across Hokkaido, it will likely unlock new opportunities in emerging hubs beyond Ishikari, such as Tomakomai and Chitose.

 

Data center decentralization is evolving from simply “relocating facilities to the countryside” to strategically “positioning compute resources regionally and linking them via ultra-high-speed networks to cities.” As the foundational compute layer for the AI era takes shape, the ongoing rollout of IOWN between Hokkaido and Tokyo will be a major trend to watch.

Read more
What is a “Neocloud”? Inside SoftBank’s Push for Next-Generation AI Infrastructure TOPICS & NEWS

2026.08.17

What is a “Neocloud”? Inside SoftBank’s Push for Next-Generation AI Infrastructure

As generative AI accelerates worldwide, demand is surging for specialized computing capacity capable of handling massive AI workloads. Emerging at the center of this transition is a new category of infrastructure provider: the neocloud.

 

Unlike traditional hyperscale cloud platforms built to host general-purpose applications like corporate databases and web services, a neocloud is a purpose-built platform designed specifically for high-performance AI tasks, such as large-scale model training and inference. By integrating dense clusters of top-tier GPUs with tailored AI software, neoclouds deliver the extreme compute power required by modern AI architectures.

 

SoftBank Accelerates Its Neocloud Strategy

 

In Japan, SoftBank is aggressively stepping up its neocloud investments. In May 2026, the company unveiled its “AI Data Center GPU Cloud”—a unified platform combining proprietary management software, Infrinia AI Cloud OS, with high-density GPU infrastructure.

 

Scheduled for launch in October 2026, the platform leverages state-of-the-art hardware such as NVIDIA’s GB200 NVL72 to cover the full AI lifecycle, from data processing and training to real-time inference. By centralizing GPU cluster management and workload orchestration, SoftBank aims to drastically reduce the operational friction companies face when building AI development environments.

 

The Convergence of Neoclouds and Next-Gen Data Centers

 

Scaling a neocloud business requires much more than simply racking GPUs; it depends on a tight integration of underlying facilities, high-capacity power, and advanced cooling technologies.

 

A prime example is SoftBank’s flagship AI data center currently under development in Tomakomai, Hokkaido. Slated to open in FY2026, the campus is projected to expand to roughly 700,000 square meters with a total power capacity exceeding 300 MW. Designed to run on 100% locally produced renewable energy, this facility will support commercial generative AI development while also providing computing resources to universities, research institutes, and enterprises.

 

Further expanding this vision internationally, SoftBank Group and SoftBank Corp. announced in July 2026 the establishment of SB Neo in the United States. Aiming to roll out neocloud services for US enterprises starting in FY2027, SB Neo plans to scale incrementally on top of a massive 10 GW energy and AI infrastructure portfolio developed across the group.

 

As these moves show, the neocloud is evolving beyond a basic GPU-as-a-service model into a fully integrated stack spanning facilities, power, liquid cooling, high-speed networking, and orchestration software. The strategic choices made by neocloud operators will heavily influence the growth trajectory and site selection for future data centers globally.

 

Pure-Play Neoclouds Gain Global Traction—and Eye Japan

 

Outside Japan, dedicated neocloud providers are already asserting immense influence. US-based CoreWeave, the leading pure-play AI GPU cloud provider, successfully went public in 2025 following a string of landmark deals with major AI developers. Other fast-growing players include Europe’s Nebius, alongside US-based Lambda and Crusoe, all of which are actively securing power capacities that rival established hyperscalers.

 

These global neocloud giants are increasingly turning their attention toward Japan. In March 2026, GPU cloud provider GMI Cloud partnered with Wistron to announce a massive $12 billion AI infrastructure plan in Kagoshima Prefecture with a target capacity of 1 GW. If global neocloud players accelerate their market entry into Japan, it will significantly reshape local data center demand and site development trends.

 

The neocloud landscape is set to scale rapidly and diversify both in Japan and internationally. We will continue to track these global operators and their expansion into the Japanese market—stay tuned for further updates.

Read more
SK Group Outlines Plans for AI Data Center in Japan: Key Takeaways for the Domestic Market TOPICS & NEWS

2026.07.27

SK Group Outlines Plans for AI Data Center in Japan: Key Takeaways for the Domestic Market

As the adoption of generative AI accelerates globally, the race to build out robust AI infrastructure is intensifying. Japan is experiencing a major surge in data center development to meet this rising demand. Adding to this momentum is a high-profile potential move by South Korea’s SK Group: a plan to build an AI data center right here in Japan.

 

SK Group is one of South Korea’s premier business conglomerates, spanning semiconductors, telecommunications, and energy, with a global presence that rivals Japan’s top corporations. In market capitalization, the group’s valuation frequently matches Japan’s leading enterprise ranks—at times even rivaling Toyota Motor Corporation depending on market fluctuations. That a global powerhouse of this scale is targeting Japan for its AI infrastructure footprint has naturally sent ripples through the domestic market.

 

SK Group Chairman Chey Tae-won revealed that discussions are underway with Japanese corporate partners to build a next-generation “AI Factory” in Japan. If realized, this would mark the overseas debut of the group’s core AI infrastructure strategy, bringing significant change to Japan’s data center landscape.

 

Planning a Massive Infrastructure Hub in Japan

 

SK Group has positioned AI at the absolute center of its growth strategy, anchored by SK Hynix—the world leader in High Bandwidth Memory (HBM) essential for AI processing.

 

While the group is currently constructing a large-scale AI data center in South Korea in partnership with Amazon Web Services (AWS), it aims to export this proven blueprint to Japan. Chairman Chey indicated that the group is considering candidate sites with robust power supplies and ample land suitable for constructing a gigawatt-scale AI factory.

 

Unlike traditional data centers, an “AI Factory” is an advanced computing infrastructure specifically designed for training and running inference on complex AI models. A key differentiator of SK’s design is the close integration of SK Hynix’s HBM with NVIDIA GPUs to achieve high performance with optimal power efficiency.

 

Shift in Japan’s Data Center Landscape

 

Driven by the rapid adoption of generative AI across industries, domestic players like NTT Group are aggressively building out AI-ready data center capacity. Against this backdrop, having a world-class semiconductor and AI powerhouse like SK actively exploring entry into Japan carries huge strategic weight.

 

SK Group’s AI Factory vision goes beyond erecting physical real estate. It represents a unified strategy combining AI services, cutting-edge semiconductors, and telecom infrastructure. This move opens up high-impact opportunities for collaboration with Japanese companies and could substantially elevate Japan’s AI capabilities. Furthermore, a project of this scale promises strong spillover effects for adjacent industries, including power systems, advanced cooling tech, and optical networking.

 

To meet soaring demand, Japan’s data center sector is moving toward high-density power design and geographic decentralization outside traditional urban centers. SK Group entering the mix as a new catalyst will not only drive market competition, but also significantly accelerate the overall development of Japan’s national AI infrastructure.

 

A Major New Partner in the AI Era

 

In the AI era, data centers have evolved from mere computing and storage facilities into vital national infrastructure that underpins industrial and economic power. Consequently, strategic moves by global players directly shape the local ecosystem.

 

SK Group’s proposed AI Factory project in Japan has the potential to mark a turning point for the domestic data center market. As concrete plans and corporate partnerships continue to develop, this will remain a key story for the industry to watch closely.

Read more
AI Adoption Soars in Government and Mega-Banks: Driving the Next Wave of Data Center Demand TOPICS & NEWS

2026.06.26

AI Adoption Soars in Government and Mega-Banks: Driving the Next Wave of Data Center Demand

In recent years, the adoption of artificial intelligence (AI), particularly generative AI, has expanded at a breakneck pace. While initial adoption was driven primarily by tech companies and forward-thinking private enterprises, we are now seeing a significant shift. Key institutions that form the backbone of society—namely government agencies and major financial institutions—are beginning to implement AI at scale. This momentum goes far beyond routine workflow optimization and productivity gains; it is poised to trigger a massive surge in demand for the underlying data center infrastructure.

 

Government Agencies Embrace Generative AI

 

Governments are ramping up their use of generative AI with the goal of modernizing public services and streamlining administrative operations. Various ministries and agencies are actively exploring AI for document drafting, information retrieval, and public inquiry handling. As a result, AI is fast becoming a cornerstone of digital transformation (DX) in the public sector.

 

Because government entities handle highly sensitive information, deploying AI requires an environment with uncompromising security and robust governance. This necessity is expected to fuel demand not only for secure cloud solutions but also for highly reliable, domestic data center infrastructure.

 

Furthermore, as public services become increasingly digitized, the volume of data processed by AI will naturally skyrocket. In the face of a shrinking population and labor shortages, AI will undoubtedly become an even more critical piece of public infrastructure, ensuring administrative efficiency.

 

The AI Race Accelerates in the Financial Sector

 

The financial industry is also entering a new era of AI integration. Japan’s mega-banks—including MUFG, SMBC, and Mizuho—are leveraging AI not just for internal backend tasks, but across a broad spectrum of core operations, including loan underwriting, risk management, and customer service.

 

Financial institutions sit on a mountain of customer and market data, making them prime candidates for AI-driven analytics. Recently, these banks have moved past simply providing internal generative AI tools for employees; they are now actively embedding advanced AI capabilities directly into their core business systems.

 

This shift is much more than a standard system upgrade. Training and running inference on complex AI models requires high-performance GPUs and massive computational power, pushing traditional data centers to their limits. Given the strict stability and security requirements unique to the financial sector, we can expect a sustained expansion in demand for advanced domestic facilities.

 

AI Adoption Powering the Next-Generation Data Center Market

 

The government and mega-banks represent the core pillars of society. The fact that AI adoption is scaling up in these sectors proves that this is not a temporary hype cycle, but rather a clear sign that AI is becoming permanently woven into the fabric of society.

 

As AI adoption deepens, the need for computational power and storage capacity will grow exponentially. Generative AI, in particular, requires high-density server environments packed with GPUs. Consequently, the industry is seeing a sharp rise in the importance of next-generation data centers equipped with robust power supplies and advanced cooling capabilities. In this AI era, critical innovations like liquid cooling technologies and integration with renewable energy sources are becoming essential components of data center operations.

 

The accelerating adoption of AI by the government and mega-banks is doing more than just fast-tracking digital transformation; it is serving as a powerful catalyst for the growth of the data center market. As AI continues to proliferate, the infrastructure supporting these computing resources will face unprecedented demand, elevating the role of data centers to a vital form of modern social infrastructure.

Read more
For the establishment and development of next-generation digital infrastructure Founder Message

2026.05.26

For the establishment and development of next-generation digital infrastructure

 We are an asset management company established to promote investment in Japan for the assets in the digital infrastructure sector.

 The development and acceleration of the digital & digital infrastructure mainly pulls economic growth, not only in Japan but also around the world. Meanwhile, digitalization in Japan is still lagging behind major Western and Asian countries (Japan ranks 27th in the World Digital Competitiveness Ranking 2020). It has passed more than 20 years since the beginning of 21st century. In Japan, however, we could not have big innovation because the political, administrative, economic, and social systems have never broken away from their traditional ways. I believe this is one of the reasons why we are too much behind other advanced countries in this field.

 Going back to the late 1990s, Japan experienced financial crisis following the bursting of the bubble economy. At that time, Western investment funds accelerated their investment to non-performing loans and real estate in Japan, and gained a lot. Japan was able to escape from the worst-case scenario and gradually set a roadmap for the revival of the Japanese economy. Although Japan gained a chance to go to direct finance from indirect, it has not yet been able to create the huge investment funds like those of western countries, middle east countries and Singapore. I believe that one of the reasons for this is the national character of the Japanese people. Our risk-taking sensitivity differs from that of continental peoples. But what about this situation from the fast-growing companies point of view which requires huge capital investments? If it is difficult to raise funds through indirect financing. Without the risk money to the project, there is no hope for the future growth of the Japanese economy, and that would take away the opportunities from many talented people and companies that are trying to create new business.

 Now we are in the new trend under the economic recovery from the Covid-19 crisis , the strong promotion of digitalization, the decarbonization, the change and diversification of people’s values, and the emphasis on SDGs and a symbiotic society.

 We are working for the growth and acceleration of the digital infrastructure field, which is the backbone of the promotion of the digital field. Currently, AI (Artificial Intelligence) and Deep learning are the must for digital field. However digital infrastructure has not been established yet to prepare for HPC (High Performance Computing) which is necessary for these two tech. The overall digital infrastructure, including high-performance data centers, edge data centers, and communication networks and base stations, needs to be established as soon as possible. Approximately 80% of Japanese data centers are concentrated in the Kanto and Kansai area from latency and access point of view. It is a problem from a BCP perspective. In addition more than 40% of existing data centers are more than 20 years old. Furthermore low-power data centers (2 kVA/rack or less), which cannot afford to deal with huge amount of data transaction for such as AI (these are at least 6 kVA/rack). kVA/rack or more), account for more than 60% out of all data centers. And the most important point is huge amount of money is required to establish digital infrastructure. It is said that it costs more than 3 million yen per “tsubo” for total floor space to build a new data center. Its cost is about three times as much as that of a popular office building. For example, the cost of a data center with more than 1,000 racks is 10 billion yen or more. It is not easy to decide this investment by considering the size of it. From this point of view, only a few large carriers and system integrators with strong financial background can build a data center in Japan. In order to overcome this issue, we strongly recommend the liquidation of real estate investment funds (off-balance sheet investment) with asset management services. In other words, by the separation of ownership and management, we can accelerate the investment in the digital infrastructure field. At the same time, it is necessary not only to promote investment, but also to give due consideration to the trend toward decarbonization. This means that investments in digital infrastructure must be positioned as ESG investments.

 We would like to contribute to the establishment of Japanese next-generation digital infrastructure and economic development by promoting the investment to the Digital Infrastructure in Japan through our asset management service. Because we want to continue to be a essential company in digital infrastructure.

 Wishing that we can make good relationship with stakeholders by getting their understanding and sympathy to our vision.
 
May 2022
Masayoshi Kosugi
Representative Director
Digital Infrastructure Lab, Inc.

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The government is hoping to decarbonize domestic data centers through industrial clustering and subsidies. ESG + DC

2026.05.27

The government is hoping to decarbonize domestic data centers through industrial clustering and subsidies.

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.

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Google warns Irish government moratorium on data center development ESG + DC

2026.05.26

Google warns Irish government moratorium on data center development

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.

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Data center facility inspection robots to be fully deployed from April 2023 (NTT DATA) ESG + DC

2026.05.26

Data center facility inspection robots to be fully deployed from April 2023 (NTT DATA)

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.

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Announced the start of construction of “Zero Emission Data Center” planned in Ishikari City, Hokkaido (KCCS) ESG + DC

2026.05.26

Announced the start of construction of “Zero Emission Data Center” planned in Ishikari City, Hokkaido (KCCS)

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.

 

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