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The Japanese government is now clearly emphasizing the importance of “Watt-Bit Collaboration”—the fusion of energy and digital technologies. The 2024 Basic Policy on Economic and Fiscal Management and Reform has positioned this collaboration as a core strategy, aiming to create a framework that simultaneously solves regional challenges and drives economic growth by integrally utilizing watts (electric power) and bits (digital data).

A key technology expected to drive this initiative is the next-generation decentralized ICT infrastructure known as IOWN (Innovative Optical and Wireless Network). By leveraging its decentralized and autonomous network architecture, IOWN enhances processing capabilities at the network’s edge. This structure allows for the distribution of massive power consumption and data processing to regional areas, rather than concentrating them in a few urban data centers. This capability makes it possible to overcome the limitations of over-concentration in metropolitan areas and establish a robust digital infrastructure in local communities.

The “Watt-Bit” Concept: A Vision That Thrives in Regional Japan

At its core, the Watt-Bit Collaboration is a vision designed for regional Japan, not a policy meant for metropolitan hubs like Tokyo and Osaka. This energy-x-digital approach is most effective when applied to the unique challenges plaguing rural areas, such as population decline and aging infrastructure. Today, advances in network technology—including fiber optics, 5G/Local 5G, and even satellite internet—have significantly overcome geographical disadvantages. An environment capable of handling advanced digital processing is rapidly taking shape in regional Japan.

From a power supply perspective, distributed data processing facilities also offer advantages to utility companies by providing greater flexibility for managing supply and demand and integrating renewable energy sources. In particular, a “locally-produced, locally-consumed digital infrastructure” that runs on renewable energy like solar and wind can enhance disaster preparedness and boost the overall resilience of local municipalities.

Will Big Tech Get on Board? The Next Challenge for Decentralized Infrastructure

However, this vision is not without its challenges. It remains uncertain whether global IT giants like GAFAM, which handle vast amounts of data, will embrace a decentralized regional infrastructure model. Their decisions will hinge on multiple factors, including the reliability, security, and cost-effectiveness of distributed edge computing and smaller-scale facilities. The ability to build an operational model that satisfies these global players will be the key to the nationwide success of the Watt-Bit Collaboration.

Moving forward, the initiative will require more than just national-level policy design and support. It calls for a diverse range of players—including local governments, private companies, power utilities, and telecommunication carriers—to work together to create a sustainable and practical model. The Watt-Bit Collaboration is not merely a technological endeavor; it is a national project that will define the very future of Japan’s regional communities.