Data Centers Spread Across Japan

Japan's data center construction is expanding rapidly due to growing demand for computing power driven by artificial intelligence (AI) technologies. This expansion is creating lucrative opportunities for a variety of companies involved in supplying key infrastructure components for these facilities.

While semiconductor manufacturers, optical fiber producers, and other high-tech firms have received much attention, companies linked to construction and infrastructure are also benefitting from the increased demand for data centers. Major Japanese corporations are expected to participate in large projects, with operations slated for the early 2030s.

Akita Prefecture is emerging as a potential location for AI data centers, taking advantage of the region's substantial offshore wind power resources. Discussions are underway for a massive AI data center project with investments totaling approximately 2 trillion yen, with development expected to be completed by the early 2030s. SoftBank is pursuing another project in Hokkaido with plans to operate entirely on renewable energy.

The Japanese government has designated data centers as one of 17 strategic fields under its growth strategy, targeting a domestic market of 30 trillion yen by 2035. Public and private investments of 32.7 trillion yen are planned through fiscal 2035, with an estimated economic impact of 107.1 trillion yen.

Companies like Hibiya Engineering, specializing in air-conditioning systems for data centers, and Daihen, which focuses on large transformers for substations, are poised to benefit from this expansion. Electric utilities are also reinforcing transmission networks to support the growing number of data centers, leading to increased demand for transformers and related infrastructure.