Japan’s drive to become a major hub for artificial intelligence is increasingly constrained by a fundamental challenge: bottlenecks in data center construction. As domestic companies and global hyperscalers ramp up AI workloads, demand for high-performance computing space has surged far faster than the country’s ability to build the infrastructure needed to support it. Power availability is one of the most pressing issues. Many regions lack sufficient grid capacity to handle the massive electrical loads required by GPU-dense facilities, leading to long waits for utility upgrades. These delays cascade directly into multi-year project timelines.
Land scarcity adds another layer of complexity. Suitable plots near major metropolitan areas—where network connectivity is strongest—are limited and expensive, forcing developers to look to remote regions where permitting and coordination can be slow. Meanwhile, Japan faces a shortage of specialized construction labor and engineers familiar with high-density, liquid-cooled data center design, slowing progress even when sites and power are secured.
These combined constraints threaten Japan’s broader AI ambitions. Without rapid expansion of data center capacity, companies may shift computation abroad, undermining national goals for digital sovereignty and innovation. Addressing power, land, and workforce shortages will be essential if Japan hopes to compete in the global AI infrastructure race.
asia.nikkei.com
Land scarcity adds another layer of complexity. Suitable plots near major metropolitan areas—where network connectivity is strongest—are limited and expensive, forcing developers to look to remote regions where permitting and coordination can be slow. Meanwhile, Japan faces a shortage of specialized construction labor and engineers familiar with high-density, liquid-cooled data center design, slowing progress even when sites and power are secured.
These combined constraints threaten Japan’s broader AI ambitions. Without rapid expansion of data center capacity, companies may shift computation abroad, undermining national goals for digital sovereignty and innovation. Addressing power, land, and workforce shortages will be essential if Japan hopes to compete in the global AI infrastructure race.
Bottlenecks in data center construction threaten Japan's AI ambitions
Labor shortages, rising costs and outdated building processes delay construction
asia.nikkei.com