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Tokyo Electric Power Holdings and NTT announced on December 19, 2023, two new initiatives in their collaborative business.

Data Center Business

The first is the data center business. NTT Data Group, NTT Global Data Centers, and Tokyo Electric Power Grid have agreed to jointly develop and operate a new company in the Inzai Shirai area of Chiba Prefecture, aimed at establishing a data center. They plan to establish a special purpose company within the fiscal year 2023, develop a data center with a power capacity of 50 MW, and aim to open and start services in the second half of fiscal 2026.

With the proliferation of generative AI, there is an expected increase in demand for data centers. Both companies have indicated a policy to leverage their expertise to aim for an advanced data center model, taking into account the realization of carbon neutrality.

Storage Power Plant Launch

The second initiative is the storage power plant business by TEPCO Holdings and NTT Anode Energy. In November, they established a limited liability company, ‘Tsumagoi Storage Power Plant LLC’, in Tsumagoi Village, Agatsuma District, Gunma Prefecture. They are preparing for the construction of the storage power plant and other preparations, aiming to start the business in 2025.

In the context of advancing the introduction and utilization of renewable energy towards the realization of carbon neutrality by 2050, issues such as securing adjustment power and enhancing the power system that become necessary are becoming evident.

To address these issues, TEPCO Holdings and NTT Anode Energy have been utilizing batteries in their efforts. By bringing together the expertise both companies have cultivated and collaborating in the increasingly necessary storage power plant business, they aim to expand the application area of batteries, reduce costs, and further develop the storage power plant business.

Future Trends Worthy of Attention

In 2020, the power consumption of data centers accounted for 2.1% of the total power consumption (913.5 billion kWh), an increase from about 1.4% in 2018. Furthermore, according to a report by the International Institute for Environmental Economics, if the trend of increasing computational load continues into the future, it is expected to reach 90 TWh domestically by 2030.

The establishment of new companies by NTT and TEPCO, Japan’s largest data center operators, to meet the growing power demand in a carbon-neutral way is garnering attention from the entire industry.

As this is an important topic in discussing Japan’s data center market, we will continue to follow these developments.”