Japan’s NTT Data Group is reportedly nearing an agreement to develop a major artificial intelligence data center for U.S. AI company Anthropic in Osaka Prefecture. The proposed facility could cost as much as 1 trillion yen, approximately US$6.3 billion, making it one of Japan’s largest planned AI infrastructure investments. The development would establish Anthropic’s first dedicated data center in Japan and significantly expand the country’s computing capacity.
Negotiations and Proposed Timeline
NTT Data and Anthropic are reportedly in the final stages of negotiations, although neither company has announced a binding agreement. The companies aim to finalize arrangements by the end of Japan’s fiscal year in March 2027, with partial operations potentially beginning as early as 2028. The proposed schedule reflects the substantial planning and construction requirements associated with large-scale AI computing facilities.
The project remains subject to negotiations, infrastructure arrangements, and final investment decisions before construction can proceed. Both companies declined to comment on the reported discussions, leaving several commercial and operational details unconfirmed. The proposed investment, capacity, and opening schedule therefore remain preliminary rather than formally committed.
A Large-Scale AI Infrastructure Investment
The planned Osaka facility could have a total power intake capacity of up to 500 megawatts, placing it among Japan’s largest data centers. Such capacity would support the substantial computing requirements associated with developing and operating advanced artificial intelligence models. The facility would represent a significant addition to Japan’s AI infrastructure if completed at the proposed scale.
The estimated 1 trillion yen construction cost represents only part of the potential investment required to establish the facility. Equipping the site with advanced AI servers and graphics processing units could push total investment to several trillion yen. These additional expenses highlight the capital-intensive nature of building infrastructure capable of handling increasingly demanding AI workloads.
Electricity Supply Presents a Major Challenge
Securing sufficient electricity could become one of the project's most significant obstacles, given its proposed 500-megawatt capacity. Obtaining that level of power directly from existing utility networks could require considerable time and infrastructure development. As a result, alternative electricity sources are reportedly being considered to support the facility’s initial operations.
Potential solutions include on-site power generation and fuel cells, which could reduce immediate dependence on the electricity grid. However, no final energy-supply arrangement has been publicly confirmed for the planned development. The challenge illustrates how electricity availability is increasingly influencing the location, scale, and implementation of major AI infrastructure projects.
Anthropic’s Expansion and NTT Data’s Infrastructure Strategy
For Anthropic, the proposed facility would represent an important step toward expanding its dedicated computing infrastructure across Asia. The company is also reportedly exploring potential data center developments in other Asian markets, including discussions involving companies in Australia. These initiatives reflect the growing importance of securing computing resources to support future AI model development and deployment.
NTT Data brings extensive international experience in developing and operating large-scale data centers, including facilities designed for demanding AI applications. Its global data center portfolio already exceeds 1,600 megawatts of combined capacity, supported by technologies such as advanced liquid cooling. The Osaka project could strengthen its position in Japan’s expanding AI infrastructure market while creating opportunities for additional large-scale contracts.
The proposed Osaka data center highlights the increasing scale of infrastructure investment required to support advanced artificial intelligence. With construction costs potentially reaching US$6.3 billion and power capacity of up to 500 megawatts, the project could become a significant addition to Japan’s technology infrastructure. However, its development remains dependent on finalizing negotiations, securing sufficient electricity, and completing the necessary investment and construction arrangements.
Source: Nikkei Asia