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For a long time, Inzai City in Chiba Prefecture has been a prime location for data centers in the Tokyo metropolitan area. With ample land and easy access to the city center, it has attracted numerous major operators. However, in recent years, significant power supply constraints have emerged, posing a major challenge for new developments. The current mayor’s lack of a proactive stance on attracting data centers has also made it difficult for Inzai to maintain its position as the top choice. Consequently, the industry is now searching for the “next Inzai.”

Sagamihara’s Proactive Strategy

Sagamihara City in Kanagawa Prefecture is gaining traction as a strong contender. The city’s Hashimoto area has been attracting attention due to the upcoming Linear Chuo Shinkansen Line, and it has a successful track record of attracting data centers in the past. The city government is actively promoting new developments, as highlighted in a recent regular city council meeting in June 2025. In response to a representative’s question, the city emphasized that a “stable power supply system is essential for data center development.” It also revealed that it is working with Tokyo Electric Power Company (TEPCO) Power Grid to discuss improvements to high-voltage receiving facilities and reinforcement of supply routes. The city is also exploring the potential for renewable energy, signaling its commitment to building sustainable urban infrastructure.

The “A and A District” of Asaodai and Shino, considered a top candidate site, has a significant advantage in its proximity to Tokyo, despite the constraints of being near the Atsugi Air Base. With major players like Goodman, a logistics facility developer, reportedly showing interest, market attention is on the rise.

Power Supply and Future Outlook

Even with these efforts, it remains to be seen whether Sagamihara can secure a sufficient power surplus. After the previous data center development in the Hashimoto area, power shortages became an issue, which will likely make operators cautious. However, the city’s early engagement with power companies and its emphasis on renewable energy are positive signs for long-term stability.

The rapid expansion of data centers in Japan, driven by the growth of generative AI and cloud services, is reaching a turning point as Inzai’s capacity wanes. The growing interest in Sagamihara reflects this shift in the industrial landscape. Sagamihara’s ability to establish itself as the “next Inzai” will ultimately depend on how successfully it can develop its power supply and surrounding infrastructure.