Japan Accelerates Race to Become Asia's Data Center Hub

Japan is accelerating its competition to become the data center hub for the Asian market with the latest infrastructure. Inzai, Chiba Prefecture, near Tokyo, is known as Japan's 'holy land for data centers,' attracting global IT giants like Google, Amazon, and Microsoft, as well as operators such as Digital Realty.

MC Digital Realty, a joint venture between US-based Digital Realty and Japan's Mitsubishi Corporation, opened a new data center, 'NRT14,' in Inzai on the 8th. The facility, with a capacity of approximately 25MW, is part of an expansion aimed at strengthening AI competitiveness. NRT14 features a new 'liquid cooling' technology that circulates special fluid to resolve the heat generated by AI semiconductors. MC Digital Realty now operates three data centers in Inzai and a total of nine across Japan, including this latest opening, with plans to double its capacity within the next few years. MC Digital Realty has operated nine data centers in Japan since completing its first facility in Osaka in 2017.

Securing data center capacity for AI computation has become a critical factor in national competitiveness. High-performance graphics processing units (GPUs) required for AI operations consume massive amounts of power and generate significant heat. The construction of cutting-edge data centers capable of stably managing this heat is now considered a measure of a nation's AI competitiveness.

Inzai City in Chiba Prefecture, located about 40km from Tokyo, is considered an optimal site for data center construction in Japan. It offers proximity to a major metropolitan area, stable ground conditions, and well-established large-scale power infrastructure, drawing in global IT companies.

International real estate consulting firm Cushman & Wakefield estimates the data center capacity in Tokyo and surrounding areas to be approximately 1350MW in its 'H2 2025 Global Data Center Report,' while Seoul and its metropolitan area are estimated at around 820MW. The industry places Japan's total data center capacity, including the Kansai region like Osaka, at over 3000MW, compared to South Korea's national total of about 1000MW.

As the importance of data centers grows, conflicts with local communities surrounding their construction are also emerging. In Japan's Inzai region, despite over 20 data centers already operating, a recent proposal for a new facility near a train station and residential areas led to resident opposition, temporarily halting the project. An Inzai city official noted that new data center constructions in densely populated residential areas require new zoning classifications and regulations. The city plans to develop new operational guidelines by gathering input from both residents and businesses.