NTT in 2024: Advancing Digitalisation for the Data Centre

In December 2023, it was announced that NTT and TEPCO Power Grid, Inc. agreed to establish a new company to jointly develop and operate data centres in the Inzai-Shiroi area of Greater Tokyo, Japan
In December 2023, it was announced that NTT and TEPCO Power Grid, Inc. agreed to establish a new company to jointly develop and operate data centres in the Inzai-Shiroi area of Greater Tokyo, Japan
The company has big hopes for 2024 in the world of AI and data centres, expanding its use of generative AI and moving towards a more decarbonised world

As data centre demand continues to increase in line with the rapid development of generative AI (Gen AI), companies worldwide are looking for new solutions to continue serving clients.

NTT is one such company wanting to expand its global data centre presence. In December 2023, it was announced that NTT and TEPCO Power Grid, Inc. agreed to establish a new company to jointly develop and operate data centres in the Inzai-Shiroi area of Greater Tokyo, Japan. This partnership aims to ensure the strategic placement of data centres to secure power and connectivity.

It comes in the wake of a 2023 pledge by NTT to invest 8 trillion yen (US$59bn) over the next five years into data centres, AI and other areas of growth.

Upgrading data centre business

The Nippon Telegraph and Telephone Corporation (NTT) is a Japanese telecommunications holding company headquartered in Tokyo, Japan. Its subsidiary NTT Data offers full-stack services, leading technologies and one of the largest connected platforms globally.

With more than 200 data centres, NTT Data is also able to provide comprehensive data centre solutions to meet a company’s unique IT infrastructure requirements, which is supported by local expertise.

NTT’s proposal with TEPCO recognises a plan to build data centres in the Inzai-Shiroi region, with a total planned IT load of 50MW. The new company will be established this year (2024) and plans to deliver first capacity in the second half of 2026.

Both are aiming to develop an advanced data centre model to enhance digitalisation of society and help solve carbon neutrality issues in Japan. It will draw upon NTT Data’s expertise in telecommunications, data processing technology and building and managing globally standardised data centres. This will be coupled with TEPCO’s expertise in power facilities and optimum usage of dispersed power for carbon-neutral solutions.

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

In May 2023, it was reported that NTT would be spending US$11bn on expanding or upgrading data centres over the next five years. This was part of an 8 trillion yen (US$59bn) investment plan into data centres, AI and other areas for growth.

Keeping pace with ever-growing demand

All areas of the company’s business are taking action to continue expanding and evolving. In particular, NTT Communications has responded to the growing demand for high-heat-generating servers due to the ever-growing use and demand for Gen AI. Its Green Nexcenter solution was recently announced as Japan’s first service for ultra energy efficient data centres that are compatible with liquid cooling technology.

The goal is to address the need for more efficient cooling methods, as well as using new technologies to enable ultra-low power consumption as well as low latency connectivity across multiple data centres.

In his new year message, NTT Communications President and CEO, Toru Maruoka, said: “We will continue to strengthen NTT Com's three business pillars: digital transformation (DX), green transformation (GX), and customer experience (CX) in 2024.

“Going forward, NTT will continue to provide reliable services and solutions, backed by continuous improvements in security and quality.”

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