Loading

Search

:

Japan To Build Largest Data Centre Hub In Toyama

  • Category:Other
Nanto city in Toyama prefecture, western Japan, is set to develop the country’s third and largest data centre cluster, boasting a total power capacity of 3.1 gigawatts, according to a document obtained by Reuters.

The announcement, planned in collaboration with private developer GigaStream Toyama, is expected on Friday, News.Az reports, citing Reuters.

Once completed, the project will rank among the world’s largest data-centre hubs, comparable to OpenAI’s $500 billion, 10-GW Stargate initiative.

While demand for data centres continues to rise, establishing a resilient third hub outside Japan’s main population centres of Tokyo and Osaka has been challenging.

Currently, these two regions host roughly 85% of the nation’s data centres. The government has stressed the importance of regional diversification to relieve congestion in these areas.

Nanto, located approximately 250 km (155 miles) from both Tokyo and Osaka, is considered a low-risk location for natural disasters. Toyama prefecture is among Japan’s regions with the fewest major earthquakes, according to the Japan Meteorological Agency.

The first phase of the Nanto Campus would support about 400 megawatts of power capacity, equivalent to some of Japan's largest data centres announced so far and capable ​of servicing hyperscale operators such as Amazon, Microsoft and Alphabet's Google.

The site will be ready for service ‌by the end of 2028, according to the public-private plan.

GigaStream Toyama, which focuses on preparing infrastructure for data centre operators - a business model similar to that of U.S.-based Lancium and Tract - plans to begin promoting the Nanto Campus at the Pacific Telecommunications Council conference in Honolulu next month, according to the document.

The company is headed by Daniel Cox, a 25-year veteran in the Japanese real estate investment market.

Officials at Nanto city and GigaStream Toyama declined ⁠to comment, saying they would make an announcement soon.

Driven by ​cloud and AI services, Japan's data-centre market is forecast to almost ​double to more than 5 trillion yen ($32 billion) in the five years to 2028, according to research firm IDC Japan.

The government hopes the sector will help it reach a ‍goal of attracting 120 trillion ⁠yen in foreign direct investment by 2030, up from 53.3 trillion yen in 2024.

Unlike in eastern Japan, power is more abundant and generally cheaper in the western region, which is serviced by utilities such ⁠as Hokuriku Electric Power, Kansai Electric Power, Electric Power Development (J-Power) and other smaller operators.

Hokuriku Electric, for example, sells less than half ‌of its maximum potential output even without its idled Shika nuclear power plant.
 
 

Comment(s) Write comment

Trackback (You need to login.)