Japan Data Center Update 38: Large-Scale Data Center Development Gains Momentum

JERA to develop data center powered by up to 400 MW at Chiba thermal power station

JERA announced that it will develop a data center within the premises of its Chiba Thermal Power Station (Chiba City), designed to receive up to 400 MW of power supply. JERA has signed a memorandum of understanding with Dell Technologies (US) and RHAELM (UK) to accelerate the development of AI infrastructure in Japan. JERA presented a plan to begin phased operation of the data center, the first project under the agreement, from 2028. The facility is expected to become the largest single-site data center in Japan. The total investment is expected to exceed JPY 2.3 trillion.

Because the power plant operated by JERA will supply electricity directly, data center customers can secure AI computing capacity years earlier than conventional grid-connected data centers, which typically take time to connect to the grid.

Using this project as a standard model, JERA is also considering developing data centers at other thermal power plant sites it owns in Japan, aiming for a total of multiple GW nationwide in the 2030s.

JERA’s 4.4 GW Chiba Thermal Power Station (Original Source: JERA).

Yaita City and TEPCO HD team up to develop data center cluster

Yaita City in Tochigi Prefecture and Tokyo Electric Power Company Holdings (TEPCO HD) announced plans to strengthen cooperation to develop a data center cluster. Yaita City has been recently selected as a GX Strategic Zone. TEPCO HD will help address challenges including power procurement, site selection, and attracting data center investment.

TEPCO HD’s Managing Executive Officer Seiichi Suzuki said that identifying suitable locations requires expertise and that TEPCO HD intends to play an active role in finding sites. To meet data center operators’ renewable energy needs, the company plans to offer flexible supply options, including directly sourced renewable electricity and electricity bundled with non-fossil certificates (NFCs).

Japan to consider securing power infrastructure for growing data center demand

The government held a meeting of the Council of Japan Growth Strategy and announced plans to consider securing power infrastructure to meet rising electricity demand from the expansion of data centers, semiconductor plants, and other facilities. Noting that labor shortages in the construction sector could hold back growth investment, the government also announced plans to compile a policy package, the Japan Growth Strategy Implementation Plan, by the end of the year to address these challenges. For priority fields among 17 strategic fields and 62 products and technologies (including data center), the plan will designate the five years through around 2030 as a period of intensive investment and set out the details and amounts of investment.

–