Japan Real Estate Developers Boosting Data Center Projects

Tokyo, Sept. 14 (Jiji Press)--Major real estate developers in Japan are stepping up their data center development, as further growth is expected on the back of an artificial intelligence boom.

According to the communications ministry, the data center-related market in Japan is expected to exceed 5 trillion yen in 2028.

As friction with nearby residents, particularly in urban areas, is increasing over data center construction projects, the developers hope to leverage their expertise accumulated through land transactions and redevelopment projects to facilitate smooth expansion of their data center businesses.

Daiwa House Industry Co. plans to build a total of 14 data centers in Inzai, Chiba Prefecture, east of Tokyo, and will start construction of its fifth data center in late September.

The company also developed a modular small data center, which involves manufacturing some components at factories and assembling the structure on-site. The first such facility was built in April in Okuma in the northeastern prefecture of Fukushima.

[Copyright The Jiji Press, Ltd.]