GR Japan: Building Japan’s Digital Backbone - Opportunities and Challenges in Data Center Development

Data center

As Japan accelerates its transition toward a fully digital society, data centers have evolved from simple IT facilities into essential pillars of national social infrastructure. Driven by the explosive demand for generative AI and cloud services, the Japanese market is witnessing an unprecedented surge in development. Yet, this growth is met with significant structural challenges, from power grid limitations to the rising costs of construction and the complexities of regional land acquisition.

Our latest report explores the shifting geography of Japanese data centers, moving toward a decentralized "hub-and-spoke" model, and outlines the critical role of local governments in facilitating this transition. We examine the "Watt-Bit" paradigm, the importance of Green Transformation (GX) for decarbonized data management, and the policy frameworks required to ensure Japan remains a competitive global leader.

Please read the attached PDF file for the complete insight.