NTT Global Data Centers Japan (NTT GDCJ), a subsidiary of NTT DATA Group Corporation, and TEPCO Power Grid (TEPCO PG) have disclosed a collaboration to establish a new joint company focused on developing and operating data centers in the Inzai-Shiroi area of Greater Tokyo, Japan. Recognized as a significant hub for large-scale data centers in the Asia-Pacific region, the joint venture’s initial project involves acquiring land in this area and developing data centers capable of supporting a total planned IT load of 50MW.

NTT DATA, a trusted global innovator with a USD $30 billion valuation, is dedicated to helping clients transform through various services, including business and technology consulting, digital solutions, applications development, and global data centers. The new company is set to be established in Spring 2024, with operational capacity planned for the second half of the fiscal year in 2026.

This joint venture aligns with NTT Global Data Centers’ expansion strategy in Japan and globally, with NTT committing to invest YEN ¥1.5 trillion (approximately USD $12 billion) in its data center business over the next five years. Concurrently, TEPCO Group is focused on enhancing power generation and transmission systems’ efficiency and sustainability by supporting the development of data centers in local communities.

Given the increasing demand for data usage and computation, particularly with the rise of generative AI and other technologies, global demand for additional data centers is expected. The partnership between TEPCO Group and NTT GDCJ aims to create an advanced model for future data centers, leveraging NTT DATA Group’s technology proficiency and TEPCO Group’s expertise in power facilities and carbon-neutral solutions.

The venture’s primary goal is to promote the digitalization of society and address carbon neutrality challenges. This unique partnership combines the strengths of both entities to propel the development of the data center industry in Japan and internationally, contributing to the broader strategy of NTT Global Data Centers.