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The rush to build data centers continues into 2025 as AI demand surges. Overseas companies are actively entering the Japanese market, with firms from the United States, Europe, Australia, New Zealand, China, Singapore, and more making their way in recent years. We’d like to share the news that two major Vietnamese IT companies will be joining them by the end of 2024.

Vietnam’s Largest IT Company, FPT, to Invest $200 Million in AI Data Center in Japan

Vietnam’s largest IT company, FPT, has announced plans to open an AI data center in Japan in 2025.

In an interview, FPT Chairman Truong Gia Binh stated that the company will invest $200 million (approximately 31 billion yen) in the first phase, along with multiple partner companies. While he did not disclose the partner companies, it has been revealed that SBI Holdings has agreed to invest in FPT.

According to Mr. Binh, the data center in Japan is expected to provide services to sectors such as automotive, manufacturing, retail, and healthcare.

Furthermore, FPT has revealed that it is in discussions with Sumitomo Corporation and NEC regarding AI collaboration, and is also considering potential joint ventures with Japanese telecommunications carriers.

CMC to Invest $500 Million in Data Center Expansion, Up to $100 Million in Japan

CMC, Vietnam’s second-largest IT company, plans to invest $500 million (approximately 75 billion yen) in infrastructure development, including data centers, over the next five years through 2028. The company aims to increase the capacity of its data centers in Vietnam tenfold and plans to spend up to $100 million in Japan.

CMC has data centers in three locations in Vietnam, including the capital city of Hanoi. The company plans to expand its power capacity, which indicates the scale of the data centers, from the current approximately 10 megawatts to a maximum of 100 megawatts by 2028. It also plans to establish smaller-scale data centers in Japan and other countries.

Regarding the development of data centers in Japan, the company is considering whether to own its facilities or use rentals. If it owns the facilities, the investment is expected to be around $100 million, while rentals would cost around $50 million.

Japan’s Data Center Market Driving Demand in the APAC Region

According to a report by research firm Knight Frank, the Tokyo data center market is valued at “2,575MW” and is said to be driving demand in the APAC region, further increasing Japan’s importance. It is expected that more and more foreign companies will enter the Japanese data center market in the future, and we look forward to the activities of domestic data center operators as well.