#Japan #Data Center #Kitakyushu #Nippon Steel Kowa #Kyushu Gateway

Nippon Steel Kowa Real Estate's Venture into Data Center Development

Nippon Steel Kowa Real Estate Co., Ltd. (headquartered in Minato-ku, Tokyo, represented by President Masahiro Miwa) has recently joined forces with Asia Pacific Land (Japan) Limited (Tokyo branch, represented by Yoshinobu Takahara) to embark on a groundbreaking data center hub development project in the Kyushu region. This marks the company's first foray into the data center sector, which is rapidly evolving in response to escalating digital demands.

Previously, Nippon Steel Kowa Real Estate had successfully developed and operated logistics facilities under its flagship brand, LOGIFRONT, as part of its industrial real estate initiatives. In light of the ongoing diversification of industrial structures, the company recognized the necessity for expansion into new areas, including the development of research facilities and factories. As a result, Nippon Steel Kowa has been actively working towards establishing comprehensive industrial real estate solutions that cater to a wide range of needs in the logistics, production, and R&D sectors.

Now, faced with the exponential growth in digitalization and the corresponding need for efficient data processing and storage, Nippon Steel Kowa Real Estate is committed to addressing the urgent demand for data center development. This initiative is part of the larger Kyushu Digital Gateway Fund Project, which aims to construct cutting-edge digital infrastructure by leveraging local future investment promotion laws and fostering collaboration among academia, industry, and government to secure a digital workforce.

Project Highlights

The current project seeks to establish Kyushu as the third largest data center hub in Japan, following Tokyo and Osaka, and positions the region as a vital strategic point in East Asia. The first phase involves the construction of data centers aimed at AI and hyperscale cloud companies in Kitakyushu and Itoshima, Fukuoka Prefecture.

Northern Kyushu is optimally situated to become Japan's third major data center hub, boasting the nation’s lowest electricity rates alongside access to abundant renewable energy resources. Additionally, the region features robust connectivity through domestic fiber optic networks, and offers reliable direct connections to key markets in Asia-Pacific, including Busan, South Korea, via submarine cable networks. This geographical advantage complements the role of data centers, setting Kyushu apart from established hubs in Tokyo and Osaka.

Project Overview

VOLTA Project

• - Location: Hibikino North, Wakamatsu-ku, Kitakyushu, Fukuoka
• - Area: Approximately 6 hectares
• - Data Center Capacity: 120 MW
• - Planned Operation Start: 2029

Moving forward, Nippon Steel Kowa Real Estate does not intend to limit its ambitions solely to the data center sector. The company plans to actively promote various types of industrial real estate projects that encompass solutions to societal challenges, including building the foundations of a digital society. Through these initiatives, Nippon Steel Kowa Real Estate aims to contribute significantly to resolving pressing social issues and establishing a robust digital infrastructure essential for future growth.