Shulman Advisory

Japan Data Center Update 14: Data center expansion accelerates as large-scale investment, decentralization, and local constraints collide

Publication date: April 14, 2026 

Japan Data Center Update 14: Data Center Expansion Accelerates as Large-Scale Investment, Decentralization, and Local Constraints Collide

Microsoft to Invest USD 10 Billion in Japan Data Centers to Expand AI Infrastructure

Microsoft announced it will invest USD 10 billion over four years in data centers and related infrastructure in Japan. The company will expand its own facilities and partner with SoftBank and Sakura Internet to build a domestic data infrastructure for AI operations. This marks one of the largest investments in Japan announced by a foreign data center operator. SoftBank has primarily developed data centers for its own AI initiatives, but its use cases may broaden in the future. Sakura Internet provides the “Government Cloud,” a shared platform for national and local government systems.

In addition, Microsoft will expand its own data centers in Japan, adding semiconductors and equipment required for AI operations at facilities in eastern and western Japan. The company will also strengthen developer training through partnerships with Hitachi, SoftBank, and others.

Microsoft President Brad Smith met with PM Sanae Takaichi, revealing its intention.

Getworks Launches Containerized AI Data Center in Hokkaido to Advance Regional Decentralization

Getworks, a Japanese data center developer, in partnership with GX Technology and Sanyo Kensetsu Kogyo, has launched a containerized data center, the “Misawa no Mori AI Container Park,” in Tomakomai City, Hokkaido. The company highlighted the site’s advantages, including its proximity to Shin-Chitose Airport (about five minutes by car), a cool climate, and access to well water, making it well-suited for GPU cooling. The facility has an initial power capacity of 2 MW, with plans to expand it to 10 MW in phases. The container park is a key hub in Getworks’ strategy to decentralize data centers across regional areas. Using NTT Docomo Business’s IOWN APN (docomo business APN Plus), Getworks aims to connect its sites in Yuzawa (Niigata Prefecture) and Kagoshima to establish a containerized data center business model.

Residents Oppose Mitsui Fudosan Data Center Project in Tokyo Over Environmental Concerns

In Hino City, Tokyo, local residents have strongly opposed the city’s approval of a data center project near a densely populated residential area and are calling for construction to be halted. The project, planned by Mitsui Fudosan, involves building three data center facilities on a site of approximately 114,000 m², with a maximum building height of 72 meters. Construction is scheduled to begin in October 2026. The planned site is located in close proximity to a neighborhood of detached houses. Residents have raised concerns about potential deterioration of the living environment and have requested disclosure of the facility’s expected electricity consumption, CO₂ emissions, and waste heat from cooling systems used for servers. Mitsui Fudosan has not provided this information at this stage.