Major AI data center plan advances in Akita
2026-08-06
A plan is moving ahead to build one of Japan's largest artificial intelligence (AI) data centers in Akita City. Japanese companies and the Akita prefectural and city governments are in talks to secure investment from the United Arab Emirates (UAE) and others. Development costs are expected to reach around 2 trillion yen, with operations targeted for the early 2030s.
Large-scale project advances in Akita
Sovereign wealth fund in investment talks
The Japanese government has positioned data centers as a key product and technology in 17 strategic sectors and is encouraging their dispersal to regional areas. Akita Prefecture has abundant renewable energy, especially wind power, and has an advantage in power supply. If ample oil money can be drawn in, it could help accelerate expansion.
UAE Ambassador to Japan Shihab Al Faheem will visit Akita Prefecture on the 19th and meet with Governor Kenta Suzuki and Akita City Mayor Jun Numaya. They will exchange views on comprehensive cooperation with the prefecture and city and on building an AI data center.
By the 6th, Ambassador Al Faheem told Nikkei that the sovereign wealth fund Mubadala Investment was discussing an investment. According to several people familiar with the matter, the investment could range from several hundred billion yen to 1 trillion yen.
The ambassador said the UAE ranks among the world's leading AI investors and is always seeking opportunities. He added that by diversifying investments, including into digital and manufacturing sectors, the country is 'reversing its economic dependence on oil'.
Using Akita's renewable energy
Total power capacity planned at up to 500 megawatts
The plan is being led by US AI startup BITGRIT, based in Delaware, and IT company S2 in Akita City. The total power capacity, which indicates the scale of the data center, is expected to reach up to 500 megawatts, making it one of the largest in Japan once completed.
The two startups will set up a special purpose company (SPC) and receive financing and investment from Mubadala and other overseas investment funds. Development costs are expected to reach around 2 trillion yen when operations begin, with the aim of attracting several trillion yen in investment over the medium to long term as the project expands.
Major Japanese companies are also expected to take part, with telecommunications companies, construction contractors and energy firms cooperating on building and operating the facility. The candidate site is an industrial park in northern Akita City, where the prefecture will begin selling land at the end of fiscal 2026 and the city will also prepare adjacent land.
Governor Suzuki told reporters on the 6th, 'We have a very good feeling. We will do everything we can to make the project happen.'
Offshore wind seen as a strength
The UAE sees Akita Prefecture as promising because it is an advanced region for renewable energy. In particular, offshore wind power is expected to exceed 2 million kilowatts across four sea areas in the prefecture, enough to supply the equivalent of 1.5 million households, and it is also planned to be used in the AI data center project.
Data centers consume vast amounts of electricity, and around the world there are concerns they may not be able to operate because power grids are not keeping pace. If offshore wind development progresses smoothly, it would help secure stable power.
Locating facilities close by can reduce transmission losses, and another advantage is the abundance of water resources needed to cool the equipment. Ambassador Al Faheem said, 'There are many success factors for moving the plan forward, and we want to deepen our cooperative ties.'
By the end of 2027, BITGRIT will begin operating a 1.5-megawatt small data center in Akita City. It will introduce high-performance AI servers from Nvidia and use them for research into power management and next-generation high-speed communications.
BITGRIT is also working with Hiroshi Yamakawa, a principal researcher at the Matsuo-Iwasawa Laboratory at the University of Tokyo, on AI development. In the medium to long term, it will place the large AI data center at the core and operate it as a base for technology development and practical applications.
US-Iran conflict draws attention to backup locations
According to consultancy Global SWF, the assets under management of UAE sovereign wealth funds are among the largest in the world, with the Abu Dhabi Investment Authority managing $1.187 trillion, or about 186 trillion yen, and Mubadala managing $385 billion. The UAE is accelerating digital investment at home and abroad under its drive to reduce dependence on oil and become an AI power.
Meanwhile, data centers located in Gulf countries face higher risks of attack by drones and missiles following the military conflict between the US and Iran. In light of this situation, the UAE is believed to have focused on relatively safe Japan from a risk diversification standpoint.
The Japanese government has made cloud and data centers a pillar of its growth strategy and will invest 32.7 trillion yen jointly from the public and private sectors, including batteries, by fiscal 2035. From the standpoint of securing power and economic security, it also emphasizes dispersing facilities to regional areas outside the Tokyo metropolitan area and Kansai.
Domestically, SoftBank is building an AI data center in Tomakomai, Hokkaido, with plans to expand it to 300 megawatts in the medium term. Among foreign firms, US Microsoft has said it plans to invest a total of $10 billion in data centers in Japan and related facilities by 2029.
With the rapid spread of AI, demand for AI data centers is expanding worldwide. Attracting more overseas investment could help lift Japan's industrial competitiveness.
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