Japan is seeking to accelerate its development of data centre infrastructure through a $140 billion investment initiative aimed at establishing the country as a leading hub for artificial intelligence (AI) infrastructure outside the United States and China. This strategy involves a partnership between Dell Technologies, Jera—one of the world’s largest gas trading companies—and UK-based AI infrastructure firm Rhaelm.
The consortium announced plans to build a $15 billion, 400-megawatt data centre near Tokyo, scheduled to begin operations around 2028. Located in Chiba Prefecture, adjacent to the capital, the facility is poised to be the largest AI data centre project in Asia outside China. The project’s financing will be supported by Apollo Global Management.
Jera’s global chief executive, Yukio Kani, said the partners intend to rapidly scale their efforts, aiming to develop between three and four gigawatts of combined AI data centres and gas-powered energy infrastructure within the next five years. Kani highlighted Jera’s annual trading volume of 35 million tonnes of liquefied natural gas as a critical asset for powering these data centres and underscored the importance of swift project execution, citing Japan’s position as a significant data centre market in Asia outside China.
Beyond standardizing the construction of data centres and power facilities to reduce costs and expedite completion, the partnership is also exploring opportunities to expand data centre and power plant projects outside Japan.
Japan already hosts major data centre operators such as NTT Data and SoftBank and has attracted significant commitments from global investors, with Blackstone planning a separate $30 billion investment in Japanese data centre infrastructure in the coming years. Despite these efforts, Japan’s data centre capacity remains considerably behind that of the US and China. According to a recent industry report, US data centres consume approximately 29.2 gigawatts of electricity—accounting for 43 percent of global data centre power use—while China’s consumption stands at 8.5 gigawatts. Japan’s data centres, by comparison, use just 1.7 gigawatts.
The Japanese government has targeted a total of ¥32.7 trillion ($206 billion) in public and private investment by 2035 for cloud computing and data centre development under a broader strategic plan led by Prime Minister Sanae Takaichi to enhance the country’s capabilities in key technological sectors. The new initiative underscores Japan’s ambition to close the gap with leading AI infrastructure powers and foster a more competitive position in the global technology landscape.
