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NTT & TEPCO join forces to advance Tokyo's data centre industry
Thu, 21st Dec 2023

NTT Global Data Centers Japan (NTT GDCJ), a subsidiary of NTT DATA Group Corporation, and TEPCO Power Grid (TEPCO PG) have announced an agreement to create a new joint company. This venture will focus on developing and operating data centres in the Inzai-Shiroi area of Greater Tokyo, Japan.

The Inzai-Shiroi region is recognised as a significant hub for large-scale data centres across the Asia-Pacific region. The joint venture's initial project will be to procure land in this area and develop data centres capable of supporting a total planned IT load of 50MW.

NTT DATA is a USD $30 billion trusted global innovator of IT and business services. It helps clients transform through business and technology consulting, industry and digital solutions, applications development and management, managed edge-to-cloud infrastructure services, BPO, systems integration and global data centres. NTT DATA is committed to its clients' long-term success and combines global reach with local client service in over 80 countries.

The establishment of the new company is expected to take place in Spring 2024. Its first operational capacity is planned for the second half of the fiscal year in 2026.

The joint venture complements NTT Global Data Centers' ongoing expansion strategy in Japan and internationally. Over the next five years, NTT is dedicated to investing YEN ¥1.5 trillion (approximately USD $12 billion) in broadening and enhancing its data centre business on a global scale.

In conjunction with this, TEPCO Group maintains its strategic mission to enhance the efficiency and sustainability of power generation and transmission systems. This is achieved through encouraging the development of data centres and similar facilities within local communities. By capitalising on its experience in the construction and operation of power facilities and exploiting existing assets, such as land, TEPCO Group is committed to implementing its fourth comprehensive special business plan.

The demand for data usage and computation is perceptibly increasing due to the growing utilisation of generative AI and other technologies. In response, the global imperative for further data centres is anticipated to rise. This partnership underscores the broader strategy of NTT Global Data Centers to extend their data centre presence in Japan while continuing to serve data centre clients across the globe.

TEPCO Group and NTT GDCJ, in combining their unique skills and expertise, will aim to devise and implement an advanced model for future data centres. This will draw upon NTT DATA Group's proven telecommunications and data processing technology proficiency and its experience in constructing and managing globally standardised data centres. Simultaneously, it will harness TEPCO Group's knowledge of power facilities and the optimal use of dispersed power for carbon-neutral solutions.

The venture's primary goal is to promote the digitalisation of society and address issues of carbon neutrality. Consequently, this unique partnership can leverage the wealth of combined experience to propel the development of the data centre industry in Japan and internationally further.