IoLe Joins Forces with Digital Dynamic for Decentralized AI Data Center Initiative

Introduction

In a significant stride towards enhancing AI infrastructure in Japan, IoLe Co., Ltd. has announced its partnership with Digital Dynamic Co., Ltd. to embark on the "Decentralized AI Data Center Project." This collaboration aims to address the crucial need for low-latency data processing environments across the country while boosting resilience against disasters and distributing power loads.

Background of the Initiative

The rapid adoption of generative AI has triggered a surging demand for large-scale data processing across various sectors. However, approximately 80% of Japan's data centers are concentrated in the Tokyo and Osaka regions, leading to several challenges:

- Response Speed Issues: In AI services requiring real-time processing, such as autonomous driving and telemedicine, data must be processed rapidly at the edge, close to users and devices.
- Resilience Concerns: A concentration of data processing capabilities in select regions poses significant risks to overall socioeconomic activities during major disasters.
- Power Supply Challenges: High-performance GPU servers consume enormous amounts of electricity, raising concerns over electricity supply capabilities and concentrated power loads in urban areas.

In response to these challenges, the government is advocating for the decentralization of data centers as an essential national strategy. Aligning with these societal demands and policies, IoLe has committed to enhancing Japan's AI infrastructure.

Overview of the Decentralized AI Data Center Project

The project aims to establish a network of decentralized AI learning and inference data centers throughout Japan, facilitating the social implementation of AI. By distributing data processing functionalities from urban centers to various regions, the initiative seeks to promote local AI implementations and rectify regional disparities. The plan involves linking large data centers in populous urban areas with smaller, locally distributed data centers.

Specific Plans for the Project:

- Site Selection: Collaborating closely with local governments, IoLe is focusing on regions with abundant power supply capabilities, such as areas near nuclear power plants or landing stations for submarine cables. Currently, they are in the process of acquiring suitable land in several industrial parks.
- Scale of the Initiative: Each data center is targeted to provide more than 10 megawatts (MW) of power. The initial installation plan aims for a development of 4 MW, with future expansions projected to reach a maximum of 50 MW.
- Investment Scope: An initial investment of approximately 10 billion yen is planned, scaling up to 50 billion to 100 billion yen for further expansions in accordance with Digital Dynamic's investment strategy.

Societal Implementation and Human Resource Development through Collaboration

This initiative is not just about establishing the infrastructure of AI data centers; it envisions forming an "AI ecosystem" by collaborating with local governments and universities to tackle specific social issues faced by communities.

Concrete Efforts include:

- AI Talent Development:

- Professionals from this project will serve as instructors at newly established AI-related faculties in partnering universities.
- Long-term internship programs will allow students to gain hands-on experience in data centers and AI applications.

- Community Issue Solutions:

- The new data centers will leverage plentiful computational resources (GPU servers) to address challenges faced by local governments, such as disaster prevention and optimizing tourist movement.
- Students participating in internships will engage in projects from conception to implementation, creating practical solutions that are rooted in local communities and nurturing future talent for AI innovation.

Future Goals

IoLe is focused on expanding partnerships with small and medium-sized enterprises nationwide that are central to this initiative. With a robust foundation of collaboration between the private, academic, and governmental sectors, the program aims to accelerate the social implementation of AI across Japan, fostering the growth of partner companies and contributing to the development of local communities and enhancing Japan's digital competitiveness in the process.

Company Overview

- Company Name: IoLe Co., Ltd.
- Headquarters: RONDO Nihonbashi Building 4F, 6-16 Nihonbashi Yokoyamacho, Chuo-ku, Tokyo, 103-0003, Japan
- CEO: Yugo Takino
- Established: April 25, 2001
- Capital: 915,330,000 yen as of March 31, 2025
- Number of Employees: 100 as of March 31, 2025
- Stock Market Listing: Tokyo Stock Exchange, Growth Market (Stock Code: 2334)
- Business Activities: Operations of various services for PCs and smartphones, development and provision of ad technology products, management of internet advertising and promotional activities, operations of travel media, and AI data center business.