Japan Data Center Update 22: Tokyo Leads New Focus on Data Center Waste Heat and Clean Power

TMG seeks startups with innovative ideas for the use of data center waste heat

Tokyo Metropolitan Government (TMG) has launched a tender for applications for its “Program to Promote Unused Heat Utilization by Startups,” which aims to use unused heat, including waste heat from data centers. The program will recruit startups with technologies or services for unused heat utilization and data center operators in Tokyo that can provide demonstration sites, supporting them from matching through to commercialization. Selected startups will receive project funding of up to JPY 20 million per company, with around two companies expected to be selected.

Under the program, TMG has identified two directions for unused heat utilization models. The first is a model for the “direct use” of heat generated by data centers within local areas, such as heat supply for hot water, air conditioning, and agriculture. The second is a pilot demonstration of thermoelectric conversion technology that converts waste heat into electricity, with potential applications including small batteries and charging spots for smartphones.

Enecom to offer renewable electricity option for Hiroshima data center customers

Chugoku Electric Power Group’s Enecom will launch a new annual contract plan that allows customers of its EneWings Hiroshima Data Center to choose electricity derived from renewable energy. The new plan will be offered from April 2027. Data center usage fees consist of rack usage fees for placing customer equipment inside the data center and electricity charges. Customers will be able to choose either conventional electricity charges or renewable electricity-derived charges.

Exterior view of the EneWings Hiroshima Data Center (Source: Cloud Watch).

KDDI cuts cooling power by 60% at Osaka Sakai data center

TopoLogic, a startup originating from the University of Tokyo, is developing semiconductor memory using a new material, known as TL-RAM. The technology reduces power consumption to about one-quarter of conventional memory, and could eventually cut power use to one-tenth. As rising data center power consumption becomes a social issue amid the spread of AI, TopoLogic aims to replace existing products, including low-cost, high-capacity DRAM and SRAM, which accelerate central processing unit (CPU) processing, by reducing electricity consumption. The company estimates replacing SRAM and DRAM in data centers with TL-RAM could reduce total data center power consumption by 30% to 50%.

TL-RAM was selected in 2025 for a public funding program by the New Energy and Industrial Technology Development Organization (NEDO), which is under the Ministry of Economy, Trade and Industry. From 2027, TopoLogic plans to integrate the technology into final products around 2030.

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