Key facts
- A 500-megawatt AI data center is planned for Akita Prefecture, Japan.
- The total project investment is estimated at approximately 2 trillion yen ($12.6 billion).
- UAE's Mubadala Investment fund is in talks to invest up to 1 trillion yen ($6.3 billion).
- Akita Prefecture is chosen for its access to renewable energy, particularly wind power.
- Japan is actively seeking foreign investment in strategic sectors like AI infrastructure.
Plans are advancing for what could become Japan's largest artificial intelligence data center, situated in Akita Prefecture in the country's north. The ambitious project is expected to cost approximately 2 trillion yen, or about $12.6 billion.
Abu Dhabi's sovereign wealth fund, Mubadala Investment, is reportedly in discussions to invest as much as 1 trillion yen ($6.3 billion) in the 500-megawatt facility. This potential investment underscores a global trend of seeking stable locations for critical AI infrastructure, particularly as geopolitical tensions rise elsewhere.
Akita Prefecture has been identified as a prime location due to its abundant renewable energy resources, including wind power, which is crucial for the massive energy demands of data centers. The Japanese government is actively supporting such strategic investments by designating areas like Akita as priority zones for AI and semiconductor manufacturing, offering substantial financial incentives.
Other foreign and domestic investors may also participate in the project, with a consortium of Japanese companies anticipated to handle construction and related infrastructure. The UAE's engagement highlights its growing role as a global investor in AI and its underlying infrastructure, with Mubadala having previously invested in AI-related ventures.
UAE Ambassador to Japan Shihab Alfahim is expected to visit Akita in mid-August to discuss the data center construction with local officials, signaling the seriousness of the investment talks.