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We have previously reported on the trend of decentralizing data centers to regional areas.

This time, we will look at the movements of SoftBank, which plans to construct a data center in Hokkaido.

Meeting between SoftBank President Miyakawa and Hokkaido Governor Suzuki

SoftBank has officially decided in November to gradually develop Japan’s largest data center in Tomakomai City for use in generating AI and other applications, with the government also deciding on a subsidy of up to 30 billion yen for construction costs.

On November 24, Junichi Miyakawa, President of SoftBank, visited the Hokkaido Government Office and met with Governor Suzuki.

President Miyakawa, who has been discussing with Governor Suzuki for about two and a half years, mentioned the advantages such as significant savings in electricity costs for cooling servers due to the cool climate of Hokkaido. He also addressed the disadvantages, such as being slightly away from data-needy areas like Tokyo and Osaka, which could lead to communication delays.

They plan to overcome geographical challenges by using the data center primarily for purposes such as internet backbone line development and AI training models that are less affected by communication delays. They also plan to develop power sources like storage facilities and hydroelectricity to supply renewable energy even at night.

Regarding the development of generative AI at the data center, which is scheduled to open in three years, Miyakawa expressed his ambition to “learn from urban data and build service models that can be used in various regions.”

Governor Suzuki responded by saying, “Rapidus, aiming for domestic production of advanced semiconductors, is also moving in. We want to realize an integrated complex base for research and talent development in Hokkaido. With the decision of this construction plan, we want to accumulate functions as a ‘Data Center Park’.”

Hokkaido and SoftBank plan to sign a comprehensive collaboration agreement to solve regional issues.

Will the Data Center Business Revitalize the Region?

The development of generative AI at the data center, along with the realization of a base for research and talent development, could have an immeasurable impact on the local economy and more. Will the data center business hold the key to regional revitalization? We will continue to pay attention to SoftBank’s movements in constructing the data center in Hokkaido.