Japan Data Center Market Update 8: Tokyo to Introduce First Prefectural DC Construction Guidelines

Tokyo to Formalize Data Center Development Standards and Launch JPY 9.6 Billion Incentive Program

The Tokyo Metropolitan Government plans to establish Japan’s first prefectural-level guidelines for DC development to balance surging AI-driven demand with local environmental and community concerns, according to the Nikkei. Expected by the end of FY2025, the guidelines will set standards for landscape and environmental considerations, provide guidance to operators, and compile case studies of successful agreements between developers and residents. The move follows rising local opposition in areas such as Akishima and Hino over noise, waste heat, power use, and visual impact.

To improve oversight, Tokyo will also introduce a mechanism to comprehensively track DC projects before construction begins. From April, developers submitting mandatory decarbonization plans for large-scale projects will be required to explicitly designate “data center” as the facility type, enhancing visibility into pipeline activity.

While the guidelines tighten expectations on siting and local impacts, Tokyo will also launch a certification scheme in FY2026 for high-quality DC projects meeting criteria such as renewable energy use (e.g., solar PV), energy efficiency, disaster resilience, and community contribution. Certified operators will be eligible for subsidies covering up to half of equipment costs, with JPY 9.6 billion allocated in the FY2026 draft budget.

Equinix Locks in 120 MW Solar VPPA in Japan’s Largest Data Center-Linked Deal

ENEOS Renewable Energy (ERE) announced on February 17th that it has signed a virtual power purchase agreement (VPPA) with U.S.-based data center operator Equinix. Under the agreement, ERE will supply non-FIT, non-fossil certificates derived from a solar power plant as environmental value to Equinix’s data centers in Japan for 15 years starting in January 2027.

The certificates will come from the approximately 120 MW Sanda Mega Solar Power Plant located in Sanda City, Hyogo Prefecture. According to Equinix, this is the largest solar project by output tied to a VPPA signed by a data center operator with a presence in Japan.
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