UAE’s sovereign wealth fund Mubadala Investment is in discussions over supporting a data centre development in Akita in northern Japan with an estimated value of Y2tn ($12.62bn).
UAE ambassador to Japan Shihab Alfaheem confirmed the discussions to Nikkei Asia, describing the UAE as among the world’s foremost AI investors and noting the country’s constant search for such opportunities.
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He added that broadening its investment portfolio would help address the UAE’s long-standing economic reliance on oil.
Mubadala’s potential stake may range from hundreds of billions of yen to about Y1tn, the report said.
The project is being led by US-based AI startup Bitgrit and Akita-based technology company S2.
Operations are aimed for the early 2030s, with capacity expected to reach 500MW.
Alfaheem is due to visit Akita on 19 August for talks with prefectural governor Kenta Suzuki and city mayor Jun Numaya.
“We have a very good feeling about this. We will do everything we can to make the project a reality,” Suzuki was quoted as saying by the publication.
Companies from Japan’s telecoms, construction and energy sectors are expected to participate in the construction and operation of the facility.
The site selected for the project is in an industrial park in Akita. Plots are scheduled to be put up for sale by the prefecture toward the end of the current fiscal year, while the city is separately developing neighbouring land.
Ahead of completion of the main facility, Bitgrit plans to open a smaller 1.5MW site in Akita by end-2027.
It will use AI servers from Nvidia and other manufacturers and serve as a base for research on power management and advanced high-speed communications.
Akita has been chosen in part for its renewable energy potential.
Offshore wind projects are planned in four zones with combined output of more than two million kilowatts, enough for about 1.5 million households.
The data centre is planned to operate using wind power, while cooling will use the region’s water resources.
