METI Selects 38 Candidate GX Strategic Zones for Final Approval This Summer

The Ministry of Economy, Trade and Industry (METI) selected promising zones under its GX Strategic Zone System, which aims to promote integrated development of decarbonized power and telecommunications infrastructure (‘watt-bit’ integration). A total of 38 zones were chosen across three categories: (1) former Industrial complex revitalization, (2) data center clustering (also see our previous newsletter), and (3) utilization of decarbonized power sources (GX industrial parks).

Under the former industrial complex revitalization category, which integrates power and telecommunications infrastructure development, six zones were selected: Chiba Prefecture, Kawasaki City, Hyogo Prefecture, Kagawa Prefecture, Okayama Prefecture, and Yamaguchi Prefecture. Under the GX industrial parks category, 23 zones (44 sites) across Japan, increasingly in Hokkaido and the Tohoku region, were selected. These include zones such as Wakkanai City, Rokkasho Village, Kashiwazaki City, and Kobe City, which have strong potential for renewable energy utilization or power generation siting. Details of the former industrial complex revitalization and GX industrial park plans will be disclosed later, following coordination with the applicant municipalities.

Under the data center clustering category, nine zones were selected: Hokkaido, Akita Prefecture, Miyagi Prefecture, Tochigi Prefecture, Ibaraki Prefecture, Toyama Prefecture, Kagawa Prefecture, Fukuoka Prefecture, and Kagoshima Prefecture. Although the screening and selection process was conducted at the municipal level, METI disclosed only prefecture names to prevent speculative reservation of land and power capacity.

The government will further refine and review the business plans of the shortlisted zones before formally designating the GX Strategic Zones around summer 2026.

🔍 Shulman Commentary:

The selection of promising zones shows the serious commitment of the government to advance watt-bit integration by leveraging the regional decarbonized potential. Developers should carefully monitor the upcoming stages of this tender process, as the promising zones are expected to evolve into new regional energy and telecommunication infrastructure hubs, generating a wide range of business opportunities. Additionally, it could accelerate competition for grid access and focus transmission investments in specific regions.