DC Update 3: On-Site Gas Cogeneration & AI Energy Savings

Tokyo Gas subsidiary backs data centers with on-site gas cogeneration　

Tokyo Gas Engineering Solutions (TGES), a subsidiary of Tokyo Gas, has begun supporting data center development by proposing on-site gas cogeneration systems that allow projects to start operations even in locations with insufficient grid infrastructure. TGES is working with CBRE and La Clé de Joie to introduce systems that supply both electricity and cooling using recovered heat, enabling data centers to launch within 2–3 years instead of waiting for grid reinforcement.

Courtesy: Hokkaido Electric Power Co., Inc.

Hokkaido Electric Power studies new LNG capacity to support data center demand growth

Hokkaido Electric Power is considering building a new LNG-fired power plant in the Tomakomai, Hokkaido area in the late 2030s, citing expected electricity demand growth driven by data center and semiconductor projects in the area. Demand growth projections by OCCTO show Hokkaido’s electricity demand in FY2035 rising by more than 10% compared with FY2024. The plant would be located next to the Tomatoh-Atsuma coal facility and is expected to have a capacity of around 500–1,000 MW, with investment potentially exceeding JPY 100 billion.

Research shows AI-driven energy savings will double data center power demand in 35 years

Research from the Institute of Energy Economics, Japan (IEEJ) estimated that if AI-driven energy saving technologies become widely adopted globally, energy savings in 2035 could reach the equivalent of 2,088 TWh. This figure is roughly twice the projected electricity demand of data centers in 2035, estimated at 1,080 TWh. While AI adoption has generally been associated with rising data center electricity demand, this estimate suggests that once AI-driven energy saving technologies are effectively implemented, this could offset the overall DC-related energy consumption.