Japan Data Center Update 37: Japan’s AI Data Center Expansion: The Race to Build and Power Capacity

Japan’s AI data center capacity to more than quadruple by 2033

Japan’s AI data center capacity is set to more than quadruple by the mid-2030s compared with the end of 2025, according to a Nikkei survey of expansion plans at 26 major data center operators in Japan. Drawing on interviews and publicly announced projects, the survey found that 22 companies plan to expand their AI data center operations in the country. Power receiving capacity, a measure of data center scale, is projected to increase from 1.1 GW at the end of 2025 to 4.9 GW by 2033, roughly 4.5 times the current level, an increase of 3.8 GW.

Nevertheless, ensuring sufficient power supply to newly built data centers  will be a key challenge. Particularly, heavy congestion in grid connection processes has been a major bottleneck for data center operators, with connections s taking several years in some cases. 

Hitachi Systems and HPE aim to halve containerized data center deployment times

Hitachi Systems will expand its partnership with Hewlett Packard Japan (HPE) to accelerate the deployment of containerized data centers. The partnership will combine Hitachi Systems’ expertise in containerized data center design and construction with HPE’s GPU server consulting and deployment support, alongside HPE Group’s financial services, including residual-value leases and deferred-payment programs. These combined offerings are expected to shorten deployment times from 12 months to as little as six months and also reduce the substantial upfront financial burden. Compared with conventional building-based data centers, containerized data centers offer shorter delivery times, lower costs, and greater design flexibility. However, deployment can still take more than a year, with upfront costs reaching several billion JPY in some cases.

Hitachi and U.S.-MCG partner to supply integrated power infrastructure for AI data centers

Hitachi also announced a partnership with U.S.-based Mission Critical Group (MCG), a supplier of power distribution equipment for data centers. The companies will combine their equipment to meet growing demand for AI data centers.

MCG specializes in equipment that distributes power to servers, with standardized products that help shorten installation times. Hitachi supplies transmission and distribution equipment for data centers through its core subsidiary, Hitachi Energy. Together, the companies will provide integrated power infrastructure from the grid to the servers.
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