One of Japan’s Largest AI Data Centers to Be Built in Akita

Akita, Aug. 17 (Jiji Press)–A project is underway to build one of Japan’s largest artificial intelligence data centers in the northeastern prefecture of Akita, aiming to launch operations as early as 2030. The project is led by S2, a local server management firm based in the city of Akita, and U.S. startup Bitgrit Inc. Total construction costs are estimated at some 2 trillion yen. The data center is expected to be built in an industrial zone to be developed by the city and prefecture governments in the northern part of the city. Through cooperation with the local governments, the two firms hope that the data center will help attract AI-related companies and human resources to the prefecture. The data center’s total power-receiving capacity is slated to reach up to 500 megawatts, making it one of the largest in Japan. Additional investment amounting to several trillion yen could be made depending on future demand and facility expansion. S2 and Bitgrit plan to establish a special purpose company to seek investments and financing from domestic and overseas financial institutions and investment funds. A sovereign wealth fund from the United Arab Emirates has shown interest in investing in the project, according to the companies. A large amount of the electricity required to operate the planned data center is expected to be provided by renewable energy sources, including offshore wind power generation being developed off Akita. The Akita prefectural government has already passed the first stage of a screening process for a plan to have the central government designate the region under its green transformation initiative. The result of the final screening process will be announced by the end of this summer. If selected, the prefecture may receive support for developing electricity infrastructure. Members of a UAE delegation plan to visit the prefecture on Wednesday. They are expected to exchange views on an investment plan for the data center and regional industrial development with Akita Governor Kenta Suzuki and Akita Mayor Jun Numaya. “We would like to attract businesses related to autonomous driving technologies and drones,” S2 CEO Kohei Sudo told Jiji Press, as the data center is expected to improve communications infrastructure. “We want to lend servers to AI startups at low costs,” he added. Suzuki said, “There are several things, such as research and development, that can only be done in areas near one of Japan’s largest data centers,” suggesting that the prefecture aims to promote advanced AI research and human resource development through cooperation with a university and others. Numaya said, “I hope that the data center will work to lure related industries.” END [Copyright The Jiji Press, Ltd.]