Shulman Advisory

Japan Data Center Market Update 7: Expansion Shifts Toward Renewable Regions

Publication date: Feb 26, 2026 

Japan Data Center Market Update 7: Expansion Shifts Toward Renewable Regions

PowerX and IIJ Launch Container DC Model Linking Renewables to Load Centers

On February 13th, 2026, PowerX and Internet Initiative Japan Inc (IIJ) have announced a joint move into container data centers, targeting areas with high renewable penetration such as Hokkaido and Kyushu while connecting them via fiber optic networks to major demand hubs like Tokyo and Kansai. The model aims to address transmission bottlenecks and long lead times for grid expansion by integrating power and digital infrastructure, a step toward “watt-bit integration.”

PowerX has commercialized a short lead-time container product, “Mega Power DC,” with installation costs (excluding IT equipment) estimated at JPY 1.77 billion per 1 MW of receiving capacity, roughly 25% lower than conventional large-scale DCs. Mass production is scheduled to begin in FY2027 at its Tamano factory. Capacity can be scaled modularly, with 125+ units reaching 25 MW-class hyperscale levels. Each unit includes integrated battery storage, enabling time-shifted power usage and potentially selling surplus power.

Image of PowerX’s container data center

 

Aomori Prefecture Partners With Utilities and Telecom to Attract DCs 

Aomori Prefecture signed a cooperation agreement with Tohoku Electric Power, NTT East, the Development Bank of Japan (DBJ), and an industrial land developer to accelerate efforts to attract DCs. By leveraging each participant’s strengths, from grid capabilities to telecommunications networks and industrial land, the initiative aims to create a more investment-ready environment for future projects.

Aomori has the potential to become a competitive destination due to its strong decarbonized power potential, abundant land, and cool climate, which can help reduce server cooling costs. 

Beyond infrastructure, the prefecture views DC investment as a tool for regional revitalization, with the goal of creating attractive employment opportunities and encouraging younger populations to remain in, or return to, the area.

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