#Japan #Tokyo #Brookfield #Hitachi #Hartree

Collaboration for Sustainable Digital Infrastructure

On July 17, 2023, Hitachi, a prominent player in energy and digital infrastructure, joined forces with Brookfield Japan, a leading global asset management firm, and Hartree Partners Singapore, a notable commodity trading company. This collaboration was formalized through a Memorandum of Understanding (MoU) aimed at exploring funding schemes for environmentally conscious digital infrastructure in Japan.

The partnership intends to address the financial needs associated with stabilizing the energy grid through the development of storage facilities and large-scale digital infrastructure requiring substantial power. Hitachi's extensive experience in designing, constructing, and operating various energy and digital infrastructure projects will play an essential role, alongside Brookfield's impressive track record in managing large-scale infrastructure investments and Hartree's expertise in renewable energy project development and commodity trading.

Background and Need for Action

As the world pushes towards a decarbonized future, adapting to the fluctuations in renewable energy output and maintaining a stable supply-demand balance for electricity is crucial. The rapid increase in demand for data centers and semiconductor factories driven by advancements in AI and cloud services has raised concerns about power shortages. Stable, green electricity supply can no longer be seen as optional but essential. Therefore, it’s vital to develop advanced energy storage solutions and on-site power systems to support large consumers of electricity, like data centers. This requires significant initial investment and a strategic approach to funding, which the newly established partnership intends to address directly.

Goals of the MoU and Future Aspirations

The trio will explore optimal funding schemes to meet the substantial financial requirements necessary for realizing next-generation green digital infrastructure in Japan. Furthermore, they will also investigate the feasibility of forming a joint venture tailored to the Japanese market. The goal is to attract a diverse array of partners, including operators of energy infrastructure, data center developers, and manufacturers of infrastructure-related equipment, to collaboratively build an eco-friendly digital infrastructure.

Insights from Each Company

• - Hitachi: According to Yoshitomo Hosoya, CEO of Hitachi's AI & Software Services Business Unit, the company is dedicated to creating a harmonized society that balances environmental well-being, happiness, and economic growth. Addressing the simultaneous challenges of rising energy demands and decarbonization is critical, and this partnership is part of a larger strategy to resolve social issues by utilizing advanced technologies in green digital infrastructure development.

• - Brookfield: Luke Edwards, CEO of Brookfield Japan, expressed excitement about contributing to Japan’s growth strategy through world-class digital infrastructure. Countries leading the development of AI infrastructure such as data centers are positioned to gain strategic advantages in global economy and national security. Brookfield aims to leverage its extensive expertise in data, power, and computing assets to explore how it can develop data center platforms in Japan effectively.

• - Hartree: Ahmed Al-Awa, Managing Director at Hartree, emphasizes the firm's commitment to active participation in environmental initiatives, including the carbon credit market. Hartree’s extensive experience in global energy markets will support the collaboration with Hitachi and Brookfield to promote green transformation initiatives in Japan.

Conclusion

This partnership is poised to contribute significantly to sustainable digital infrastructure in Japan—a necessary evolution for modern society. By aligning the strengths of each company, the initiative not only seeks investment solutions needed to develop resilient and eco-friendly infrastructure but also endeavors to foster a lasting, collaborative ecosystem. With the crucial collaboration between Hitachi, Brookfield, and Hartree, the vision for a sustainable and technologically advanced future is within reach, offering long-term benefits to society and the environment alike.