Japan Data Center Update 16: The Businesses Powering Japan’s Data Center Expansion

Yanmar to Build Backup Generator Plant in Kitakyushu as Data Center Cluster Potential Grows

Yanmar Holdings (HD) will launch a new plant in Kitakyushu City, Fukuoka Prefecture, in 2028 to manufacture large-capacity backup generators for data centers. Yanmar Energy Systems (ES) will produce the generators at the facility, which are used to supply power during emergencies. The company initially plans to produce around 100 units per year, mainly for the domestic market.

Kitakyushu City recently introduced a tax incentive in April, offering up to six years of fixed asset tax exemptions to attract data centers. The Asia Pacific Land (APL) Group, a U.S. investment firm, is already developing data centers in the city. In addition, Taiwan Semiconductor Manufacturing plans to produce 3-nanometer semiconductors for data center applications at its second plant in Kumamoto Prefecture. These developments signal that there is potential for a data center cluster to emerge in Kitakyushu, supported by semiconductors produced in the Kyushu region.

Rendering of Yanmar’s planned generator plant in Kitakyushu

SWCC Positions for Data Center Power Demand Surge with New Cable Solutions

SWCC, a major domestic cable manufacturer, is positioning its power transmission solutions for large-scale data centers expected to see strong growth. The company is promoting the use of “Y-branch” cable connection and branching components. Traditionally, dedicated power lines were laid individually from substations to each data center. SWCC aims to shorten construction timelines by adopting a method that enables sequential branching and expansion of power cables in line with data center additions, thereby reducing the time required for expansion.

Hyperscale data centers require approximately four to five times more electricity than conventional facilities. SWCC expects the data center power market to grow at an annual rate of around 20% and aims to achieve business growth exceeding overall market expansion. The company aims to secure a market share of over 25% by FY2030.

Mizuho and SoftBank Highlight Environmental Risks of Data Centers

Mizuho Financial Group and SoftBank have jointly published a report analyzing the environmental impact of data center construction and operations. The report highlights the large volumes of mineral resources and water required by data centers and urges operators to strengthen risk management at the planning stage.

The analysis was conducted between July and December last year, focusing on a data center under construction by SoftBank in Tomakomai City, Hokkaido. The report notes that data centers use significantly more mineral resources, such as copper, than other infrastructures and require large amounts of water for server cooling. It also highlights the generation of substantial electronic waste, warning that risks may arise from water pollution, water scarcity, and stricter waste management regulations.

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