NTT Data Group Corp., a Japan-based IT services and data center operator owned by government-backed NTT Inc., plans to spend at least 1.5 trillion yen (US$9.6 billion) through 2033, according to people familiar with the matter.

The investment would add about 750 megawatts of data center capacity in Japan.

That would raise its total capacity to 1 gigawatt as demand from AI and cloud customers grows.

The company expects data center spending to rise 33% to around US$3.3 billion in the fiscal year ending March.

NTT Data plans to add 42 megawatts this year and begin construction next year on a 100-megawatt data center in Tochigi, north of Tokyo.

Yasuo Suzuki, who led NTT Data’s data center operations in Asia Pacific through July, said global cloud providers generate more than 80% of the Japanese unit’s data center revenue.

He also said power-grid shortages in areas such as Inzai in Chiba prefecture can delay approval for the electricity data centers need by eight to 10 years.

🔗 Source: Bloomberg

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