LogoLOGO

TOPICS & NEWS

Watt-Bit Collaboration Opens New Horizons for Regional Revitalization: The Fusion of Energy and Digital Tech Driven by Technology and Policy

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.

TOPICS & NEWS

2025.06.24

TEPCO Establishes New Digital Infrastructure Company Amid Data Boom

Tokyo Electric Power Company Power Grid (TEPCO PG) has established TEPCO Digital Infrastructure Co., Ltd. to advance its digital infrastructure business. This move comes against a backdrop of an explosion in data demand and the redefinition of power infrastructure driven by the widespread adoption of advanced digital technologies like generative AI. Power companies are no longer just energy suppliers; they’re evolving into crucial partners underpinning our data-driven society.

 

A prime example of this evolution is the joint data center development in the Inzai-Shiroi area of Chiba Prefecture by NTT Data Group, NTT Global Data Centers, and TEPCO PG. Announced in late 2023, this plan involves establishing a Special Purpose Company (SPC) within fiscal year 2023, with services aiming to launch in the latter half of 2026. The initial phase will see the construction of a large-scale data center with 50 MW of power capacity for IT equipment, with further joint developments progressively being considered, primarily in the Tokyo metropolitan area.

 

The Fusion of Power Company Expertise and ICT Company Technology

 

The significance of this project lies in the synergy between TEPCO PG’s extensive asset base and power operation expertise, and the NTT Group’s advanced ICT technologies and global data center operational capabilities. Together, they aim to build a more sophisticated and sustainable data center model. This design philosophy, particularly its ability to address societal challenges like decarbonization and distributed power sources, points toward the future direction of next-generation infrastructure.

 

Similar initiatives are emerging from other power companies. Tohoku Electric Power, for instance, has launched a new business for generative AI using containerized mobile data centers. A key feature of this initiative is its speed-to-market approach, enabling GPU-equipped servers to be operational within a few months. Spearheaded by ideas from younger and mid-career employees, this project leverages the cool climate of the Tohoku region for efficient power consumption and also lays the groundwork for attracting large-scale data centers in the future.

 

“Electricity’s” Growing Presence as the Foundation of the Data Society

 

Underlying these developments is a structural shift in electricity demand. With the establishment and expansion of data centers and semiconductor factories, peak electricity demand is projected to reach 7.15 million kilowatts by 2034. This makes redesigning Japan’s electricity supply system an urgent priority. Addressing challenges such as stable supply, renewable energy integration, and securing baseload power simultaneously necessitates an integrated approach between electricity and digital infrastructure.

 

As power companies become deeply involved in digital infrastructure, data centers and electricity have become inextricably linked. High-density, always-on digital foundations demand vast and stable power supplies. Conversely, for power companies, data centers represent the most realistic growth driver as they seek decarbonization and new revenue streams.

 

In essence, power companies and data center operators are now transcending the traditional supplier-user relationship, transforming into partners jointly building the social infrastructure. To envision a future that balances both stable supply and sustainability, it is absolutely essential for both parties to team up and tackle these challenges together.

TOPICS & NEWS

2025.06.17

Tsukuba’s 1GW Project Signals the Dawn of the Mega Data Center Era

The trend towards increasingly large-scale data centers (DCs) is gaining serious traction, highlighted by Tsukuba’s first hyperscale data center project, which drew significant attention during its bidding phase. This initiative is spearheaded by Australia’s Goodman Group. In 2022, the company successfully acquired approximately 45 hectares of land in response to a public call for proposals conducted by Tsukuba City as part of its industrial promotion strategy. This region, developed as a “Science City,” already possesses well-established infrastructure, including telecommunications, power, and water, along with excellent accessibility from the Tokyo metropolitan area. Furthermore, it offers significant potential for further development, making it one of the few locations in Japan equipped to host hyperscale data centers.

 

The Full Scope of the 1GW Hyperscale DC Development

 

In January 2024, Goodman formally announced the “Goodman Tsukuba Data Center Campus.” The vision is for a campus-style data center envisioned to have a maximum power capacity of up to 1GW (1000MW) – a scale unprecedented in Japan. The first phase, a 50MW facility, is currently under construction and slated for completion in 2026. Notably, preliminary agreements with key anchor tenants are already in place, highlighting its alignment with current market demand. Goodman also operates a data center cluster exceeding 300MW in Inzai City, Chiba, and Tsukuba is set to become its next flagship location.

 

Next-Generation Infrastructure Driven by Global Strategy and Environmental Commitment

 

Goodman’s data center strategy is global, with developments also underway in other key global cities such as Hong Kong, Los Angeles, Sydney, and Melbourne. In February 2025, Goodman announced it had secured approximately USD 4 billion (around JPY 600 billion) for data center development. The company is projecting up to USD 80 billion in development opportunities over the next 5 to 7 years and has already secured a total power capacity of 4GW.

 

The company is also at the forefront of environmental sustainability. Through low-carbon building design and the proactive integration of renewable energy, Goodman is strengthening its adherence to ESG (Environmental, Social, and Governance) criteria. This is a significant draw for global cloud providers and AI operators that prioritize sustainability.

 

A Project Redefining Japan’s Role in the Mega Data Center Era

 

Thus, the 1GW-class data center development in Tsukuba stands as a landmark project, heralding a new phase for Japan’s domestic data center industry. This plan, achieved through a collaboration between public and private sectors, not only enhances the value of the region but is also garnering considerable attention as an initiative poised to redefine Japan’s standing in the age of mega data centers.

TOPICS & NEWS

2025.05.27

Here is the English translation of the blog post: Former Prestigious Factory Sites Transform into IT Hubs: Accelerating Data Center Redevelopment

Large factories once supporting Japan’s rapid economic growth, such as steelworks and electronics manufacturers, are now successively transforming into data centers (DCs) in response to the demands of the digital age. A prominent example drawing attention is the DC project in Kawasaki City by Mitsubishi Corporation and JFE Holdings.

 

Former Manufacturing Bases Evolve into the Heart of the AI Era

 

The two companies are moving forward with a plan to invest 100 to 150 billion yen to construct a large-scale data center on the site of the JFE Steel East Japan Works Keihin District (Kawasaki coastal area), where blast furnace operations ceased in 2023. A feasibility study is slated for completion by fiscal year 2025, with operations scheduled to begin as early as fiscal year 2030. If realized, it will be the largest DC operated by the Mitsubishi Corporation Group, with an anticipated power consumption of 60,000 to 90,000 kilowatts.

 

This plan reflects a symbolic paradigm shift from manufacturing to information industries. The Kawasaki steelworks was a crucial base that supported Japan’s steel industry for approximately 90 years, dating back to the Japan Steel Tube era. However, intense global competition led to the cessation of blast furnace operations. Now, this very site is set to transform into a state-of-the-art information infrastructure that meets the demands of AI and cloud computing.

 

In particular, the widespread adoption of generative AI has rapidly increased the need for infrastructure capable of high-speed processing of large volumes of data. Demand for servers using high-performance semiconductors from US-based Nvidia is also rising, prompting companies to seek new DC locations. Former factory sites, with their expansive land and robust power infrastructure, offer ideal conditions to meet these requirements.

 

Sakai, Kawasaki, and Across Japan: Redefining Former Factory Sites

 

Similar movements are becoming evident in other regions. In Sakai City, Osaka Prefecture, the Sakai Factory, known for Sharp’s LCD panel manufacturing, is undergoing a transformation plan to become a DC under the hands of major telecommunications companies SoftBank and KDDI. What was once a “monozukuri (manufacturing) hub” is now poised to evolve into an “information processing hub.”

 

According to forecasts by research firm Fuji Keizai, Japan’s domestic DC market is expected to reach 5,403.6 billion yen in 2029, a 34% increase compared to 2024. Consequently, not only traditional office buildings and suburban facilities, but also industrial zones in urban peripheries are gaining attention as DC locations.

 

The repurposing of industrial land is a topic that concerns not only real estate development but also energy policy and regional revitalization. Data centers, in particular, consume massive amounts of electricity, making the introduction of renewable energy and the establishment of local production and consumption power supply systems key for the future.

 

Factory complexes that once drove the Japanese economy are once again in the spotlight as foundational infrastructure for the digital society. From heavy industries to information industries—the demands of the times and technological evolution are fundamentally reshaping urban landscapes and land values.

TOPICS & NEWS

2025.05.26

Sakai Takes Center Stage as the Starting Point for Japan’s Stargate Project

The “Stargate Project,” a large-scale AI infrastructure development initiative spearheaded by SoftBank Group and OpenAI, is focusing on Sakai City as the central location for its expansion in Japan. Specifically, SoftBank plans to repurpose a former liquid crystal display panel factory owned by Sharp in Sakai. The company has acquired a portion of this facility for approximately 100 billion yen with the goal of transforming it into a cutting-edge AI data center.

 

This facility will be the third major site for the project, following an existing base in Tokyo and another under construction in Hokkaido. It boasts an impressive power capacity of 150 megawatts, making it one of the largest in Japan. Operations are slated to begin in 2026, with plans to expand capacity to 250 megawatts in the future. Sakai’s favorable location and infrastructure conditions are expected to ensure the long-term stability of the data center’s operations.

 

SB OpenAI Japan to Drive Domestic AI Development and Adoption

 

At the heart of this project is “SB OpenAI Japan,” a joint venture established in February 2025 by SoftBank and OpenAI. This company aims to develop large language models (LLMs) specifically tailored for the Japanese language and provide “Crystal Intelligence,” a generative AI service for businesses.

 

The Sakai data center is planned to host the operation of AI agents powered by GPUs, utilizing the foundational models provided by OpenAI. These agents will be specialized for various corporate functions, such as human resources and marketing, with the aim of delivering customized AI solutions that meet specific business needs.

 

These efforts have the potential to significantly accelerate the digital transformation of Japanese companies.

 

Creating the Future Through Massive Investment and Industrial Fusion

 

SoftBank is planning a large-scale development that will require 100,000 GPUs for this AI infrastructure build-out, potentially amounting to a massive investment approaching one trillion yen based on simple calculations. The GPUs are expected to be supplied by U.S.-based NVIDIA and the Stargate Project itself.

 

SoftBank President Miyakawa stated, “We aim to make Sakai a hub for the fusion of AI and existing industries, serving as an experimental ground for new business models and solutions to challenges.” This highlights the expectation that the facility will not just be a data center, but a key driver in the evolution of the AI industry both domestically and internationally.

 

Furthermore, this initiative is poised to be a crucial step in enhancing productivity across various industries and addressing labor shortages.

TOPICS & NEWS

2025.04.30

The Evolution of AI and the Shift to the Inference Phase

In March 2025, U.S.-based NVIDIA held its annual developer conference, “GTC,” and announced its new software “Dynamo,” specifically designed for inference processing. This announcement comes against the backdrop of a significant shift in AI’s evolution, moving from a primary focus on “learning” to “inference.”

 

NVIDIA, a company that has historically excelled in technologies for training AI models, emphasized that its hardware and software are now essential for inference as well. CEO Jensen Huang stressed that accelerating inference processing is key to determining the quality of AI services.

 

Key Features of the New “Dynamo” Software

 

Dynamo will be available as open-source software and is designed to accelerate inference processing by efficiently coordinating multiple GPUs. When combined with the latest “Blackwell” GPU architecture, it can reportedly increase the processing speed of the “R1” AI model from the Chinese AI company DeepSeek by up to 30 times compared to previous methods.

 

A core feature is a technique called “fine-grained serving,” which significantly improves processing efficiency by separating the inference process into two phases: “prefill” and “decode,” and assigning them to different GPUs.

 

Furthermore, by leveraging a technology called “KV cache” to store and reuse past token information, Dynamo reduces computational load. The “KV Cache Manager” integrated into Dynamo enables efficient cache management to avoid exceeding GPU memory limits.

 

The Trade-off Problem and Hardware Evolution

 

In his keynote speech, CEO Huang highlighted the trade-off between “total tokens per second (throughput)” and “tokens per user (latency)” in inference. This illustrates the dilemma where faster response times can limit the number of concurrent users, while supporting more users can lead to increased response delays.

 

To address this, NVIDIA has adopted a strategy of overcoming this trade-off through hardware enhancements. The newly announced “Blackwell” architecture boasts up to 25 times the processing power of its predecessor, “Hopper,” enabling a balance between quality and scale.

 

Continued Strong Investment in AI-Related Data Centers

 

As the primary use case of AI shifts towards inference, the demand for computational processing is experiencing exponential growth. Following “Blackwell,” NVIDIA has unveiled development plans for even higher-performance GPUs, such as “Rubin” and “Feynman,” with Dynamo evolving as the corresponding software foundation.

 

To support such high-density and high-performance AI processing, distributed and large-scale computing environments are essential. Consequently, with the expansion of AI agents and generative AI, investment in data centers as the underlying infrastructure is expected to remain robust in the future.

TOPICS & NEWS

2025.04.22

1 2 3 10