Strategic partnership launches new company to build and operate data centres in Japan

Strategic partnership launches new company to build and operate data centres in Japan

NTT Global Data Centers Japan (NTT), a subsidiary of NTT DATA Group Corporation, and TEPCO Power Grid (TEPCO PG) have agreed to establish a new company to jointly develop and operate data centres in the Inzai-Shiroi area, of Greater Tokyo, Japan.

NTT and TEPCO PG look into strategic placement of data centres to secure power and connectivity together in support of data centre development mainly in Greater Tokyo.

As the first project under the partnership, the joint venture will acquire land in Inzai-Shiroi area, one of the major hubs for large-scale data centres in the APAC region. The initial plan is to build data centres in Inzai-Shiroi with a total planned IT load of 50MW.

The new company, to be established spring 2024, plans to deliver first capacity in the second half of fiscal year 2026.

NTT Global Data Centers is investing 1.5 trillion yen (US$12 billion) over the next five years to expand and upgrade its data centre business globally.

TEPCO Group has been aiming to improve the efficiency and sustainability of power generation and transmission by fostering the development of data centres and other facilities with local communities, making the most of its expertise in construction and operation of power facilities, and utilising its existing assets including land, in accordance with its fourth comprehensive special business plan.

As demand for data usage and computation continues to increase with the wider use of generative AI and other technologies, the need for data centres is expected to continue to grow around the globe. This partnership is part of the broader NTT Global Data Centers strategy to expand its data centre presence in Japan and continue to serve data centre clients around the world.

The two companies aim to develop an advanced data centre model that helps enhance digitalisation of society and helps solve carbon neutrality issues. It will draw upon NTT DATA Group’s expertise in telecommunications, data processing technology, building and managing globally standardised data centres, coupled with TEPCO Group’s expertise in power facilities and optimum usage of dispersed power for carbon-neutral solutions.

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