Japan Data Center Update 30: Major AI Data Center Development Planned in Akita as the Data Center Decentralization Accelerates

UAE sovereign wealth fund considers investment in up to 500 MW AI data center in Akita

Japanese and US companies, together with Akita Prefecture and Akita City, plan to build one of Japan’s largest AI data centers in Akita City, with total power-receiving capacity of up to 500 MW. The parties are discussing a potential investment by Mubadala Investment Company, a sovereign wealth fund of the United Arab Emirates (UAE). The investment could range from several hundred billion yen to JPY 1 trillion, while total development costs could reach approximately JPY 2 trillion. US AI startup BITGRIT and Japanese IT company S2 are leading the project (the two companies have been implementing another data center project in Akira CIty, see our previous update), targeting to start its operation in the early 2030s.

The UAE views Akita Prefecture as a promising location because of its leadership in renewable energy. More than 2 GW of offshore wind capacity is expected across four areas in the prefecture, and the project plans to use this power for the data center.

PowerX introduces a new integrated grid connection system for BESS and data centers

PowerX unveiled its new Grid Connector series, designed to simplify connecting BESS facilities and data centers to the power grid. The company will assemble and deliver power conversion systems (PCS), transformers, high-voltage switchgear, and other components as a single integrated unit. This approach minimizes on-site work to mainly installation and connection, helping facilities become operational faster.

An installation image for PowerX’s Grid Connector for DC (Source: PowerX).

SWCC and FFJ to commercialize superconducting cable systems for data centers by FY2030

SWCC, an electric wires and cables manufacturer, signed a memorandum of understanding with superconducting wire manufacturer Faraday Factory Japan (FFJ) to commercialize superconducting cable systems for data centers. SWCC will develop large-capacity power supply systems for data centers as a new business area. By combining its expertise with FFJ’s superconducting wire technology, SWCC will develop slim, space-efficient superconducting cable systems and aims to commercialize them by FY2030. The systems will target data centers facing growing electricity demand driven by the expansion of generative AI, helping address the need for high-capacity power supply within limited space.