Publication date: Jan 26, 2026
Government Unveils Selection Timeline for GX Strategic Area DC Clusters
While there are financial support measures for data center (DC) operators (as we covered in our previous newsletter), the government also plans to subsidize municipalities that host DC clusters, each on a gigawatt scale, to accommodate the rapidly increasing DC demand. Municipalities nationwide are eligible for this ‘DC cluster type’ support through the GX Strategic Area program. The application period began on December 23, 2025, and will end on February 13, 2026 (METI). Specifically, host municipalities will be selected based on evaluation against the following criteria:
- Whether the necessary power and telecommunications infrastructure required for clustering can be secured.
- Whether the sites are geographically distributed rather than concentrated near existing clusters.
- Whether there is a reasonable prospect that DC operators will locate in the area.
- Whether the municipality has articulated a vision for promoting local industry by leveraging DCs.
After the application period closes, the government will select “promising areas” this spring. It will then provide support to refine business plans for the selected promising areas, and the government plans to make the final designation of “GX Strategic Areas” around summer 2026 (CAS 1 and 2). In the selected areas, power and telecommunications infrastructure will be developed proactively, along with the provision of support measures for data center operators locating in those areas.
Shulman Commentary: Financial support for DC clustering aimed at host municipalities goes hand in hand with individual subsidies for DC operators that use decarbonized power sources. The choice of reliable decarbonized power sources will be critical. As large-scale solar expansion is likely to face constraints, other options, such as active and reactivated nuclear power, may emerge as some of the most reliable options. Shulman Advisory specializes in helping clients model optimal power sourcing configurations and design compliant, economically viable decarbonization strategies.