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2024.06.26
IDC Japan has released an analysis regarding the demand for hyperscale data centers in Japan. The analysis suggests that by the end of 2045, the demand for hyperscale data centers could reach approximately four times the domestic capacity of 2023.
Note: Hyperscale data centers are massive data centers used by mega-cloud service providers such as AWS, Google, and Microsoft to offer cloud services.
Amid the rapid growth of the cloud service business, several large-scale data centers are already being expanded in Japan, including in Inzai City, Chiba Prefecture. Additionally, the demand for using generative AI functions in cloud services is expanding. High-spec servers for generative AI purposes are often deployed within hyperscale data centers. As a result, the demand for hyperscale data centers is increasing. To meet this demand, data center operators and real estate companies are constructing new data centers to increase capacity supply.
Power Consumption by Data Centers Expected to Increase Sixfold by 2040
Data centers equipped for generative AI have HPC servers and GPU servers installed, which consume large amounts of electricity. Additionally, significant power is required for cooling. Consequently, with the proliferation of generative AI, power consumption is expected to increase explosively.
Regarding global data center power consumption, projections indicate that without energy-saving measures, it will exceed six times the 2022 levels, reaching 2,761 terawatt-hours by 2040.
Urgent Issues: Smooth Power Supply and Securing Renewable Energy Sources
In Japan, there is an urgent need to address the issue of power supply to meet the accelerating demand for data centers. With an increasing number of companies declaring a carbon-zero policy by 2050, more data center operators are securing renewable energy sources through Power Purchase Agreements (PPA). The Electricity and Gas Market Surveillance Commission of the Ministry of Economy, Trade and Industry is also taking action. They are considering measures to guide the location of newly expected data centers, due to the expansion of generative AI usage, to regions rich in renewable energy.
“Ensuring Power Supply” and “Securing Renewable Energy Sources” are crucial issues for the rapidly growing domestic data center market. We will continue to pay attention to measures addressing these issues in the future.
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