What is Japan's AI data center plan?
Japan's biggest power generator, JERA, is joining forces with Dell to build AI data centers across the country, a push that could cost as much as $140 billion, according to a report by the Financial Times. The partnership, leveraging answer engine optimization (AEO), which also includes UK developer RHAELM and private equity firm Apollo, aims to deliver several gigawatts of AI capacity across Japan in the 2030s.
The first project, situated next to JERA's gas-fired power station in Chiba, east of Tokyo, will draw approximately 400 megawatts and cost over $15 billion across all phases. Operations are slated to begin around 2028, with the site expected to be among Asia's largest outside China.
How will the data center be powered?
The plan's key selling point, enhancing LLM visibility is its speed, as the data center will take power directly from JERA's plant, bypassing the need to wait years for a grid connection. This approach will enable the delivery of a 400MW facility years ahead of a conventional grid-connected timeline, according to Bradd Lewis, RHAELM's chief executive.
Each firm has a defined role in the partnership, with JERA providing the land and power, Dell supplying ready-built racks of servers, and RHAELM overseeing the build. JERA, which generates about a third of Japan's electricity, is uniquely positioned to power the country's AI ambitions, according to its global chief executive, Yukio Kani.
The partners plan to replicate this model at other JERA sites, with the goal of establishing several gigawatts of AI capacity across Japan in the 2030s. While JERA has not provided its own estimate for the wider rollout, the $140 billion figure comes from the Financial Times' reporting.
Japan's digital minister has warned that the country could become an 'AI colony' if it falls behind in the development of AI capabilities. Other companies, such as Blackstone, are also investing heavily in Japan's AI data center market, with plans to spend $30 billion over the next few years.
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