US investor to build $850m, 120MW, data centre in Japan

Planned 120MW data centre to be based in Kitakyushu in southern Japan, amid increasing demand for data in the Japanese market

US investment company Asia Pacific Land (APL) will invest 125 billion yen (US$854m) to build a new data centre in southern Japan.

According to Nikkei Asia, the new data centre in Kitakyushu would use 120 megawatts of electricity, making it one of the largest consumers of power on the island of Kyushu. The 63,000sqm facility would be Kitakyushu's second data center, following a site that opened in 2007.

The rising demand for data centres in Japan

The announcement of the planned facility comes amid skyrocketing demand for data and data centres in Japan. In 2021, the Japanese data centre market was valued at 1.58 trillion Japanese yen (US$10.78bn) and is projected to grow by over 41%, reaching a value of 2.24 trillion yen (US$15.3bn) by 2027. 

Much of this demand is driven by the data centre hotspots of Tokyo and Osaka, which with populations of 36 million and 19 million respectively require very high levels of connectivity.

“In such densely populated areas, connectivity is a major issue as large numbers of people require access to IT services,” Quy Nguyen, the VP of Global Sales, Solutions, Design and Construction at Colt Data Centre Services told Data Centre Magazine last year. “This desire for connectivity is met through network services with a high bandwidth and low latency. This connectivity allows enterprises and consumers to have reliable and quick access to data centres where their data is processed, stored and distributed.”

The city of Kitakyushu, Nikkei Asia says, is in the process of repositioning itself as an alternative ‘nerve centre’ within Japan and planning to attract more corporate headquarters and government agencies to the area.

It is thought the location was chosen for its proximity to where undersea communications cables come ashore, as well as the area's renewable energy potential.

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