Osaka-based Sakura Internet, a Japanese data center and cloud provider, may raise capital spending this fiscal year to 20 billion yen (US$126 million)-30 billion yen (US$189 million) from its planned 4.4 billion yen (US$27.7 million), CEO Kunihiro Tanaka said.

AI server use has reached 80%-90%, and orders are rising.

Sakura also said it is considering a further 6.5 billion yen (US$40.9 million) in capital spending, as well as additional spending to buy AI accelerators.

The Japanese government has pledged subsidies of up to 57.5 billion yen (US$362 million), which may cover about half of the company’s data center spending.

In March, SAKURA Cloud was selected by Japan’s Digital Agency as a target cloud service for the Government Cloud program for fiscal 2023 and 2026 after meeting 305 technical requirements.

The Government Cloud program is meant to provide a common cloud environment for Japan’s government.

The Digital Agency is also working to extend similar benefits to municipal governments. Sakura said it is the first domestic provider selected for multiple years.

🔗 Source: Bloomberg