Data centers, which house internet servers and data communications equipment, are rapidly being constructed across Japan. As advances in artificial intelligence technology make data centers indispensable to the digital society, challenges involving site selection and gaining the support of local residents have become increasingly apparent. Jiji Press examines the growing challenges surrounding data centers in Japan in this three-part series. Kansai Emerges as Key Data Center Hub amid AI Boom Tokyo, Oct. 29 (Jiji Press)–As the growing adoption of artificial intelligence drives data center construction across Japan, the Kansai western region is emerging as a prime location for new projects. With more than 60 pct of the country’s data centers currently concentrated in the Tokyo metropolitan area in eastern Japan, facilities in Kansai are expected to serve as a backup in the event of a disaster near the Japanese capital. They also offer low network latency, or delays in data transmission, thanks to their proximity to urban centers. Nearing Full Capacity Optage Inc., a subsidiary of Kansai Electric Power Co. based in the western city of Osaka, began operations at its Sonezaki Data Center, about a 10-minute walk from Osaka Station, in January. While the facility has a power capacity of 13 megawatts, less than that of large-scale data centers typically built in suburban areas, its proximity to many companies concentrated in central Osaka allows it to offer high-speed connectivity and a stable network environment. “We are receiving enough inquiries to nearly fill the data center” amid rapidly growing AI-related demand, an Optage official said. The company plans to build new data centers in at least three locations in the Kansai and other regions by 2035. It will invest about 300 billion yen in the construction of the facilities and the laying of submarine cables connecting them to overseas data centers. Other major companies, including U.S. technology giants Amazon Web Services Inc. and Microsoft Corp., also operate data centers in Kansai. In January this year, Japanese telecommunications firm KDDI Corp. began operating a data center at the former site of a Sharp Corp. factory in Sakai in Osaka Prefecture. In the fiscal year from next April, NTT Data Group Corp. plans to open a data center in Ibaraki in Osaka, while Kansai Electric and U.S. data center operator CyrusOne Inc. plan to launch a facility in Seika in neighboring Kyoto Prefecture. Tokyo, Kansai Host 90 Pct of Data Centers According to Fuji Chimera Research Institute Inc. in Tokyo, data centers in Kansai occupy a total site area of about 1.16 million square meters, accounting for 25 pct of the nationwide total, but only about 40 pct of the 2.87 million square meters in the Kanto eastern region, which includes Tokyo. Setting up data centers in Kansai is seen as necessary to reduce the concentration of data centers in the Tokyo metropolitan area, both to mitigate disaster risks and to promote regional industries. Meanwhile, the Tokyo metropolitan area and Kansai together account for 90 pct of the country’s data centers. Companies based in Tokyo and Osaka often seek to locate data centers nearby not only to maintain fast and stable connectivity but also to ensure access to personnel for maintenance and inspections. However, the construction of data centers in major urban areas faces numerous challenges. These include constraints on electricity supply for facilities that consume enormous amounts of power, as well as difficulties in securing sites for large-scale facilities. The domestic data center market was valued at 4.3 trillion yen in 2024 and is projected to reach 6.8 trillion yen by 2030. As demand grows, data center construction will need to be expanded to other regions beyond Tokyo and Kansai to promote geographical diversification. END [Copyright The Jiji Press, Ltd.]
