LOGO

The Japanese government has started a nationwide call for proposals from municipalities to identify suitable locations for new data center clusters. The new system, known as “GX (Green Transformation) Strategic Zones,” aims to create hubs for data centers and other decarbonization-related industries. Designated regions are expected to receive preferential treatment, including subsidies funded by “GX Economic Transition Bonds” and deregulation of land use.

The government’s goal is to build a sustainable and resilient domestic digital and industrial infrastructure, all underpinned by decarbonized energy sources.

Power Requirements: A Push for 1 Million kW-Class Expansion

One of the most notable conditions of the new initiative is the scale of power supply. The government requires that candidate sites have the capacity to expand their power grid connections to 1 million kilowatts (1,000 megawatts) in the future. With the rapid expansion of data center demand in Japan, the focus isn’t just on securing renewable energy but on creating clusters with robust power infrastructure that can handle significant future growth.

This requirement aims to not only decentralize data centers away from their traditional concentration in urban areas but also to build a nationwide infrastructure that is more resilient to power supply risks.

A Call for Decentralization and Industrial Transition

The call for proposals extends beyond just data centers. The government is also looking at repurposing former petrochemical complexes and creating industrial parks that utilize renewable energy. This is part of a broader strategy to transform declining traditional industrial centers into new engines of regional economic growth based on GX-aligned research, development, and renewable energy.

Other conditions for proposals include securing a stable land area of at least 30 hectares and ensuring robust communication infrastructure. This requires comprehensive proposals that are developed through close collaboration between local municipalities and private companies.

The Strategy Behind the New Clusters

Currently, a staggering 90% of Japan’s data centers are concentrated in major metropolitan areas. This poses significant risks from natural disasters and power shortages, making decentralization a pressing issue.

The government’s “1 million kW-class” requirement is more than just a simple decentralization policy. It signals a strong intent to create new industrial clusters built on a foundation of powerful, sustainable energy infrastructure. In other words, the policy clearly reveals a strategic aim to create new growth hubs in regional areas that complement the existing metropolitan clusters. This initiative is expected to spark intense competition among municipalities across the country vying for the “GX Strategic Zone” designation.