Generative AI and Data Center Decentralization #2

This report is the second in a three-part series analyzing the link between the proliferation of generative AI and the geographical diversification of data center locations throughout Japan.

#2        Electrical supply issues in Greater Tokyo

　　　 3.1. The proliferation of AI data centers
　　　 3.2. The tightening data center market in Greater Tokyo
　　　 3.3. Changes in data center rack prices
　　　 4.1. Electrical supply issues in Greater Tokyo in comparison to regional areas
　　　 4.2. “Watt-bit collaboration” and data center decentralization

Summary

In addition to major metropolitan centers, an increasing number of AI data centers are being built in the Tohoku, Hokuriku, and Shikoku areas. The supply-demand balance for data centers in Greater Tokyo remains extremely tight, making it difficult for developers to secure both land for development and the necessary power supply. As a result, developers now have no choice but to consider regional areas as potential sites for future data center development.

The government has launched the “Public-Private Advisory Council on Watt-Bit Collaboration” as a means of encouraging both decarbonization of regional power production and the decentralization of data centers in Japan. With renewable energy sources such as solar power and wind power seen as decarbonization initiatives with the potential to triple Japan’s current total domestic power production capacity, their importance is set to grow.