NTT Data to Invest $9 Billion to Quadruple Japan Data Center Capacity by 2033

Aug 3, 2026

NTT Data Group Corp. plans to invest at least $9 billion through 2033 to quadruple its Japanese data center capacity to 1 gigawatt, addressing soaring demand for artificial intelligence infrastructure. The expansion includes adding 750 megawatts of capacity, starting with a 100 megawatt facility in Tochigi Prefecture in 2027. However, the expansion faces severe bottlenecks due to Japan's power grid constraints, which can delay electricity connections by up to a decade in key regions.

NTT Data capacity expansion plan

▪NTT Data Group Corp. expects its data center spending to increase by approximately 33% to around $3.3 billion in the fiscal year ending March 2027.
▪NTT Data Group Corp. intends to add approximately 750 megawatts of data center capacity over seven years starting in 2026.
▪NTT Data Group Corp. plans to add 42 megawatts of capacity in 2026 and begin construction on a 100 megawatt data center in Tochigi Prefecture in 2027.
▪NTT Data Group Corp. plans to invest at least $9 billion through 2033 to quadruple its domestic computing capacity to 1 gigawatt.

AI computing demand in Japan

▪Capital spending by major Japanese companies is projected to reach an all-time high in the fiscal year ending March 2027, driven by artificial intelligence-related investments.
▪NTT Data Group Corp. is fielding interest from companies seeking to secure approximately 100 megawatts of capacity specifically for artificial intelligence inferencing.

Power grid capacity constraints

▪Securing necessary approvals to meet data center electricity needs in transmission-constrained regions like Inzai, Chiba Prefecture, can take eight to 10 years.
▪Global cloud providers, including Amazon Web Services and Microsoft Corp., comprise more than 80% of NTT Data Group Corp.'s Japanese data center business revenue.
▪SoftBank Corp. is considering an investment in Tokyo Electric Power Co. to secure electricity for its own data center expansion plans.

Global cloud provider competition

▪Amazon Web Services and Microsoft Corp. are actively expanding their own data centers in Japan while simultaneously seeking additional capacity from NTT Data Group Corp.
▪Installing one megawatt of data center capacity in Japan is estimated to cost between ¥2 billion and ¥2.5 billion, excluding the cost of artificial intelligence accelerators.
▪NTT Data Group Corp. competes globally against data center operators including Digital Realty Trust Inc. and Equinix Inc.

Data center construction economics

▪NTT Data Group Corp.'s planned expansion of 750 megawatts is estimated to cost at least ¥1.5 trillion, equivalent to approximately $9.6 billion, for construction and equipment.