AirTrunk has announced plans to increase its investment in Japan to as much as $30 billion (US$30 billion), aiming to capitalize on surging demand for artificial intelligence (AI) infrastructure in the region. This commitment represents a threefold increase from its previous investments and follows closely on the heels of another $30 billion data centre deal AirTrunk unveiled in India earlier this year.
The company, acquired by Blackstone for $24 billion in 2024, has operated in Japan for nine years, currently maintaining four campuses staffed by 120 employees. Founder and CEO Robin Khuda highlighted the strength of the Japanese market’s fundamentals and the company’s close relationships with hyperscalers such as Microsoft, Google, and Amazon as key drivers of growth. As part of the new investment, AirTrunk intends to double its committed data centre capacity in Japan to over 1 gigawatt.
Khuda emphasized the importance of efficient coordination among power supply, land acquisition, regulatory approvals, and infrastructure development to move forward with large-scale projects. He noted that global investors are naturally drawn to markets with streamlined decision-making processes and recognition of digital infrastructure’s strategic value.
This expansion takes place amid growing challenges for data centre developers in other markets such as Australia and the United States, where local opposition and regulatory delays have slowed development. Firmus, a notable data centre builder in Tasmania, has faced postponements and investor skepticism, recently attempting to reprice its public listing at a discount following weak demand.
In Australia, the federal government is conducting an inquiry into AI amid increasing public scrutiny over issues like data privacy and regulatory breaches by entities such as OpenAI. Industry representatives, including Belinda Dennett, CEO of Data Centres Australia—which represents operators like AirTrunk—assert that data centres play a pivotal role in facilitating the transition to renewable energy by underwriting investments in sustainable infrastructure.
Khuda has actively encouraged the Australian government, led by Prime Minister Anthony Albanese, to diversify the economy beyond mining and tap into the AI sector’s potential. However, other countries, notably India, have moved aggressively to court investment in digital infrastructure. In June, Khuda met with Indian Prime Minister Narendra Modi, who has championed an ambitious digital agenda with substantial funding allocated to initiatives like the IndiaAI Mission and semiconductor development. Khuda described AirTrunk’s investment in India as one of the largest in the country's digital infrastructure ecosystem.
At a concurrent Senate inquiry, Wesa Chow, executive director of think tank Per Capita, highlighted the economic opportunities of attracting AI model training to Australia, likening its potential to the transformative impact of North Sea oil on Norway’s economy. Chow cautioned, however, that copyright issues pose significant barriers, with concerns over unauthorized use of creative content by AI model developers.
Chow urged the AI industry to engage in negotiations and licensing agreements with Australian creatives to ensure that intellectual property rights are respected. Failure to resolve these matters, she warned, could undermine the quality of AI models and the sustainability of the industry by marginalizing essential content creators.
As AI and digital infrastructure evolve rapidly, countries that create favorable investment climates and address intellectual property challenges appear poised to benefit most from the expanding market for data centres and AI services.