Japan Data Center Update 33: Tokyo Advances Containerized Data Center Deployment as Shikoku Expands Incentives

NTT docomo Business and TEPCO PG collaborate on liquid-cooled containerized data centers in Tokyo

NTT docomo Business and TEPCO Power Grid (PG) announced a collaboration to develop liquid-cooled containerized data centers in the Tokyo metropolitan area. The containerized data centers can be deployed faster than building-based data centers, and can reduce the time required to make the facility operational by 40–50%. They will also utilize liquid coolant in containers to cool the systems, designed for easy transport and installation. Their first project will have a capacity of 2 MW in Ota Ward, Tokyo, with operations scheduled to begin in fall 2027.

NTT docomo Business’s demonstration containerized data center　(Source: Nikkei). — NTT docomo Business’s demonstration containerized data center (Source: Nikkei).

Shikoku steps up efforts to attract data centers with subsidies and surplus power capacity

Nikkei reported that efforts to attract data centers to Shikoku are gaining momentum, supported by growing AI demand. Ehime Prefecture’s advantages include its low earthquake risk and stable power supply, including from the Ikata Nuclear Power Plant. The prefecture also helps to subsidize soil remediation and other costs often required when redeveloping industrial sites. Kagawa Prefecture is also expanding its subsidy programs. From FY2026, Kagawa raised the cap on business-location subsidies for large investments from JPY 500 million to JPY 5 billion.

Available power supply capacity is one of Shikoku’s strengths. In Shikoku, while peak demand is projected to decline to 4.28 GW in FY2035, Shikoku Electric has approximately 6 GW of supply capacity. This projection could suggest faster grid connection for demand-side resources in the region.

Large Japanese companies plan 19.7% increase in domestic investment amid data center demand

The Development Bank of Japan (DBJ) released the results of its FY2026 capital investment plans survey. DBJ conducts the survey annually among companies. In the FY2026 survey, large companies planned to increase domestic capital investment across all industries by 19.7% year on year, exceeding the growth rate in the previous year’s plans despite growing uncertainty caused by escalating tensions in the Middle East, rising prices, and labor shortages. Particularly, the survey shows that the spread of artificial intelligence (AI) and expanding demand for data centers have motivated companies to invest actively in growth sectors. DBJ noted that the challenge of balancing economic viability with decarbonization has become increasingly pressing.
–