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Japan is set to establish its third and largest data centre cluster in Nanto city, Toyama prefecture, to meet the growing demand for cloud and AI services. The project, led by private developer GigaStream Toyama, will have a total capacity of 3.1 gigawatts, with the first phase providing 400 megawatts by the end of 2028. Located in a low-hazard western region with cheaper electricity, the hub aims to diversify Japan's data infrastructure, complement existing centres in Tokyo and Osaka, and support international hyperscale operators.
Nanto city in Toyama prefecture is preparing to launch Japan's third and largest data centre hub, according to a document obtained by Reuters. The cluster is expected to have a total power capacity of 3.1 gigawatts, making it one of the largest globally, comparable in scale to OpenAI's 10-GW Stargate project, which cost USD 500 billion. Nanto city will announce the plan jointly with private developer GigaStream Toyama. Advertisement
Japan's current data centres are concentrated in Tokyo and Osaka, which together account for around 85% of all facilities. This has created bottlenecks, and the government has emphasized the need for regional diversification. Nanto, approximately 250 km from both Tokyo and Osaka, is considered a low-hazard area. Toyama is among the prefectures with the fewest major earthquakes, making it suitable for disaster-resilient infrastructure, according to the Japan Meteorological Agency.
The first phase of the Nanto Campus will support 400 megawatts of power, enough to host hyperscale operators such as Amazon, Microsoft, and Google. The facility is scheduled to be ready by the end of 2028. GigaStream Toyama, which provides infrastructure support for data centre operators similar to U.S.-based Lancium and Tract, will promote the campus at the Pacific Telecommunications Council conference in Honolulu next month. Daniel Cox, who leads GigaStream Toyama, brings 25 years of experience in Japanese real estate investment to the project.
Japan's data centre market is expected to nearly double to over JPY 5 trillion (USD 32 billion) by 2028, largely driven by AI and cloud services. The government aims for this sector to help attract JPY 120 trillion in foreign direct investment by 2030, up from JPY 53.3 trillion in 2024. The expansion aligns with efforts to strengthen regional infrastructure and reduce overreliance on eastern Japan.
Western Japan, including Toyama, offers cheaper and more abundant power compared with the east. Utilities such as Hokuriku Electric Power, Kansai Electric Power, and Electric Power Development (J-Power) supply electricity to the region. Hokuriku Electric, for example, sells less than half of its maximum output even without its Shika nuclear power plant in operation, offering capacity for large-scale data centre projects.
Officials from Nanto city and GigaStream Toyama declined to provide further comment, saying an official announcement will be made soon. Once completed, the Nanto hub will not only meet rising domestic and international demand but also strengthen Japan's competitiveness in global digital infrastructure.
Source Reuters
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