The United Arab Emirates is considering an investment of as much as one trillion yen, or roughly 6.3 billion dollars, to help build a major artificial intelligence data center in Japan, according to a person familiar with the matter. Abu Dhabi’s sovereign wealth fund Mubadala Investment would lead the funding for a 500 megawatt facility planned for Akita Prefecture in northern Japan, potentially alongside other foreign and domestic investors, with the project expected to become the largest data center in the country once completed.
The proposed facility is being pursued by US AI startup Bitgrit and Akita based IT company S2, with the two firms planning to establish a special purpose company to raise funding from Mubadala and other overseas investment funds. Total project costs, including construction and supporting infrastructure from suppliers and companies looking to set up operations nearby, are projected to reach approximately two trillion yen, or around 12.6 billion dollars, by the time the facility becomes operational, with operations targeted for the early 2030s. UAE Ambassador to Japan Shihab Al Faheem is scheduled to visit Akita Prefecture later this month to meet with local government officials and discuss the data center project alongside broader cooperation between the two countries.
The talks reflect growing global interest in securing AI infrastructure assets in countries considered relatively insulated from geopolitical tensions, with the Gulf state’s involvement adding to a broader pattern of UAE investment in AI and related infrastructure internationally. Japan’s government has designated several regions, including Akita Prefecture, as priority investment zones for sectors such as AI data centers and semiconductor manufacturing, and has allocated substantial financial support toward attracting this kind of investment. According to Japanese government projections released earlier this year, combined public and private investment in cloud and data center capacity across the country could reach 32.7 trillion yen by fiscal year 2035.
The Akita project adds to a wave of large scale data center construction already underway across Japan, as the country works to disperse digital infrastructure that has traditionally been concentrated around Tokyo and the Kansai region toward regional locations. SoftBank, for example, is separately building a 300 megawatt facility in Tomakomai City, Hokkaido, targeting operations within the current fiscal year. Mubadala has not publicly confirmed its involvement in the Akita project, and a spokesperson for the fund declined to comment when approached, though Japan’s Nikkei newspaper had previously reported on the UAE’s plans to build a data center in the region.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
