Photo: Brett Sayles / Pexels
A survey of 26 major Japanese data center operators reveals plans to quadruple AI-focused capacity by 2033, backed by tens of billions from domestic and foreign investors alike.
Japan is betting big on becoming one of the world’s premier destinations for AI compute. A Nikkei survey of 26 major Japanese data center operators found that 22 of them plan to increase AI-focused data center capacity more than fourfold by 2033, compared to end-2025 levels. The price tag: roughly 10 trillion yen, or about $60 billion, spread over eight years.
The big spenders #
NTT, Japan’s telecom giant, is leading the domestic charge with plans targeting a total capacity of 2 GW by fiscal 2033. The company has earmarked approximately 1.5 trillion yen, roughly $9 to $10 billion, in outlays to build out 1 GW of that capacity.
Foreign capital is pouring in alongside domestic players. Blackstone has committed $30 billion to build out more than 1 GW of data center facilities in Japan over the next three to five years. Microsoft has pledged $10 billion specifically for AI data centers between 2026 and 2029.
Perhaps the most intriguing newcomer is Mubadala, the Abu Dhabi sovereign wealth fund, which is reportedly considering a project worth approximately 1 trillion yen (about $6.3 billion) in Akita Prefecture. That single facility would target 500 MW of capacity, a scale that would make it one of the largest data center projects in Asia.
Why Japan, and why now #
Japan’s government is actively rolling out the welcome mat. The country’s long-term growth strategy aims to attract more than 370 trillion yen, approximately $2.3 trillion, in combined public and private investment through fiscal year 2040. AI and semiconductors sit at the top of that priority list.
The new wave of facilities will focus on high-power AI workloads capable of supporting hundreds of megawatts per site. Operators are also emphasizing liquid cooling technology and renewable energy sources, with many projects targeting less-congested regions where land and power are more accessible. Akita Prefecture, where Mubadala is eyeing its massive build, fits that profile: rural, comparatively cheap, and far from the urban congestion of Tokyo.
Japan’s government has stressed the importance of managing data and AI models domestically, rather than relying on infrastructure housed in other countries.
The energy question is particularly relevant. Quadrupling AI data center capacity means quadrupling power consumption, and Japan already faces a constrained energy market following the pullback from nuclear power after the 2011 Fukushima disaster.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our