Publication date: Feb 17, 2026 Data Center Market Update 5: Clean Power and New Infrastructure Models Enter Japan’s Data Center Sector Japan Tests Offshore Data Centers as Yokohama Pilot Launches in March Japan’s first offshore floating data center demonstration is scheduled to begin operations in late March at Yokohama’s Osanbashi Pier, piloting a first-of-its-kind approach …
Author Archives: Lily Sze
METI Allows BG-Based Joint Procurement for Retail Supply Obligations
Publication date: Feb 17, 2026 METI Allows BG-Based Joint Procurement for Retail Supply Obligations The Ministry of Economy, Trade and Industry’s (METI) Working Group (WG) on System Design Based on the Review of Power System Reforms decided the following points regarding the planned retailer’s obligation to secure 50% and 70% of supply volumes (in kWh) …
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Data Center Market Update 4: DC Growth Drives Power Integration and Hyperscale Development
Publication date: Feb 10, 2026 Data Center Market Update 4: DC Growth Drives Power Integration and Hyperscale Development Japan to Pilot Workload Migration to Align Data Centers With Surplus Electricity The Nikkei reported that Japan’s Ministry of Internal Affairs and Communications (MIC) will launch a demonstration project in spring 2026 to connect geographically dispersed data …
Japan Modifies Proposed FY2026 Balancing-Market Reforms
Publication date: Feb 7, 2026 Japan Modifies Proposed FY2026 Balancing-Market Reforms In October 2025, the Ministry of Economy, Trade and Industry (METI) proposed a reduction in the balancing market price cap to JPY 7.21 starting from FY2026. This was met with widespread criticism from market participants, who claimed it could undermine market dynamics. Following discussions, …
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January 2026 Newsletter
Publication date: Feb 5, 2026 Japan’s ETS Takes Shape: FY2026 Rule-Making Will Define Future Carbon Costs for Power and Industry From April this year, Japan will take a decisive step into carbon pricing with the launch of its first full-scale emissions trading system (ETS). Covering an estimated 300 to 400 companies and nearly 60% of …
DC Update 3: On-Site Gas Cogeneration & AI Energy Savings
Publication date: Feb 3, 2026 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 …
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Japan Shifts FIT/FIP Support Away From New Ground-Mounted Solar
Publication date: Jan 31, 2026 Japan Shifts FIT/FIP Support Away From New Ground-Mounted Solar The Ministry of Economy, Trade and Industry’s (METI) Procurement Price Calculation Committee has proposed excluding newly installed ground-mounted solar projects of 10 kW or more from eligibility under the FIT (Feed-in-Tarrif) and FIP (Feed-in-Premium) schemes from FY2027. The change is being …
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Data Center Market Update 2: OCCTO’s 10-Year Demand Forecast
Publication date: Jan 27, 2026 Data Center Market Update 2: OCCTO’s 10-Year Demand Forecast Data Center Growth Intact, but Grid Constraints Slow the Timeline The latest 10-year demand outlook (FY2026 – FY2035) published by Organization for Cross-regional Coordination of Transmission Operators (OCCTO) on January 21, 2026, showed that Japan’s electricity demand is still expected to …
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Government Unveils Selection Timeline for GX Strategic Area DC Clusters
Publication date: Jan 26, 2026 Government Unveils Selection Timeline for GX Strategic Area DC Clusters While there are financial support measures for data center (DC) operators (as we covered in our previous newsletter), the government also plans to subsidize municipalities that host DC clusters, each on a gigawatt scale, to accommodate the rapidly increasing DC …
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Data Center Market Update 1: Wind Power, and On-Site Gas-Fired DCs
Publication date: Jan 20, 2026 Data Center Market Update 1: Wind Power, and On-Site Gas-Fired DCs Toyota Tsusho and its renewable energy subsidiary, Eurus Energy Holdings, announced they will develop Soya Green Data Center I (tentative name), a 3 MW data center in Wakkanai, Hokkaido, adjacent to the Kabakaoka Wind Farm. This DC is scheduled …
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