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Tokyo Electric Power Company Power Grid (TEPCO PG) has established TEPCO Digital Infrastructure Co., Ltd. to advance its digital infrastructure business. This move comes against a backdrop of an explosion in data demand and the redefinition of power infrastructure driven by the widespread adoption of advanced digital technologies like generative AI. Power companies are no longer just energy suppliers; they’re evolving into crucial partners underpinning our data-driven society.

A prime example of this evolution is the joint data center development in the Inzai-Shiroi area of Chiba Prefecture by NTT Data Group, NTT Global Data Centers, and TEPCO PG. Announced in late 2023, this plan involves establishing a Special Purpose Company (SPC) within fiscal year 2023, with services aiming to launch in the latter half of 2026. The initial phase will see the construction of a large-scale data center with 50 MW of power capacity for IT equipment, with further joint developments progressively being considered, primarily in the Tokyo metropolitan area.

The Fusion of Power Company Expertise and ICT Company Technology

The significance of this project lies in the synergy between TEPCO PG’s extensive asset base and power operation expertise, and the NTT Group’s advanced ICT technologies and global data center operational capabilities. Together, they aim to build a more sophisticated and sustainable data center model. This design philosophy, particularly its ability to address societal challenges like decarbonization and distributed power sources, points toward the future direction of next-generation infrastructure.

Similar initiatives are emerging from other power companies. Tohoku Electric Power, for instance, has launched a new business for generative AI using containerized mobile data centers. A key feature of this initiative is its speed-to-market approach, enabling GPU-equipped servers to be operational within a few months. Spearheaded by ideas from younger and mid-career employees, this project leverages the cool climate of the Tohoku region for efficient power consumption and also lays the groundwork for attracting large-scale data centers in the future.

“Electricity’s” Growing Presence as the Foundation of the Data Society

Underlying these developments is a structural shift in electricity demand. With the establishment and expansion of data centers and semiconductor factories, peak electricity demand is projected to reach 7.15 million kilowatts by 2034. This makes redesigning Japan’s electricity supply system an urgent priority. Addressing challenges such as stable supply, renewable energy integration, and securing baseload power simultaneously necessitates an integrated approach between electricity and digital infrastructure.

As power companies become deeply involved in digital infrastructure, data centers and electricity have become inextricably linked. High-density, always-on digital foundations demand vast and stable power supplies. Conversely, for power companies, data centers represent the most realistic growth driver as they seek decarbonization and new revenue streams.

In essence, power companies and data center operators are now transcending the traditional supplier-user relationship, transforming into partners jointly building the social infrastructure. To envision a future that balances both stable supply and sustainability, it is absolutely essential for both parties to team up and tackle these challenges together.