Benchmarking OpenAI's "Stargate"? Toyama, Japan plans to build a 3.1GW super data center cluster

Japan is accelerating the development of its third largest data center cluster to meet the surge in demand for artificial intelligence services.

On December 19, according to Reuters, Nanto City in Toyama Prefecture plans to partner with the private developer GigaStream Toyama to build a data center cluster with a total power capacity of 3.1GW. The scale of the project ranks among the top globally and can be compared to OpenAI's $500 billion “Stargate” project with 10GW of power.

According to documents obtained by Reuters, Nanto City will officially announce this plan today. The first phase of the project will support about 400MW of power capacity, equivalent to the largest data center announced in Japan to date, and can provide services for hyperscale operators such as Amazon, Microsoft, and Google. The facility is planned to be put into operation by the end of 2028.

This development will provide key infrastructure support for the rapid expansion of Japan's data center market. Research firm IDC Japan predicts that, driven by cloud computing and AI services, the scale of Japan’s data center market will double within five years and exceed 5 trillion yen (about $32 billion) by 2028.

Serving Foreign Capital and Industrial Goals

With the continued growth of cloud computing and artificial intelligence applications, Japan is seeking to establish a more competitive position globally through regional diversification and infrastructure upgrades in the data center sector.

This project aims to break the excessive concentration of data centers in the Tokyo and Osaka metropolitan areas, promoting a more diversified regional layout. Currently, these two regions account for about 85% of Japan’s data centers, and the government has made it clear that regional diversification is crucial to alleviating bottlenecks.

Reportedly, the initial 400MW capacity is sufficient to support the needs of hyperscale operators—international tech giants seeking AI computing infrastructure worldwide. The launch of the Nanto project comes at an opportune time, opening up new options for these companies to expand in the Japanese market.

At the same time, the development of the data center industry is an important component of Japan's strategy to attract foreign direct investment.

The Japanese government hopes that the industry will help achieve its target of attracting 120 trillion yen in foreign direct investment by 2030, compared to 53.3 trillion yen in 2024.

Regional Advantages: Low Disaster Risk and Ample Electricity

According to reports, Nanto City is about 250 km from both Tokyo and Osaka, and is regarded as a low disaster risk area.

According to data from the Japan Meteorological Agency, Toyama Prefecture is one of the areas with the lowest frequency of major earthquakes in Japan. This geographic advantage is critical for establishing a third data center hub with disaster recovery capabilities.

Compared to eastern Japan, the western region enjoys more abundant and lower-priced electricity supply.

The area is served by utility companies such as Hokuriku Electric Power, Kansai Electric Power, and Electric Power Development (J-Power). For example, Hokuriku Electric Power’s actual electricity sales are less than half of its maximum potential capacity, even with its Shika nuclear power plant idle.

This electricity advantage is essential for data center operations, especially given the sharp rise in energy consumption driven by AI computing demands.

GigaStream Toyama specializes in preparing infrastructure for data center operators, with a business model similar to that of U.S.-based Lancium and Tract. The company is led by Daniel Cox, who has 25 years of experience in Japan's real estate investment market.

According to documents obtained by Reuters, GigaStream Toyama plans to begin promoting the Nanto campus project next month at the Pacific Telecommunications Council meeting in Honolulu. Officials from Nanto City government and GigaStream Toyama said they will release an announcement soon.

This public-private partnership model aims to accelerate infrastructure construction progress and provide ready-to-use facilities for hyperscale cloud service providers.

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