Data Centers in the Tohoku Region Are Also Suitable Locations - Study by the Development Bank of Japan's Tohoku Branch
May 1, 2025
As the demand for data processing increases due to the development of AI technology, attention is turning to the Tohoku region as a suitable location for building data centers (DCs). The Development Bank of Japan (DBJ) Tohoku Branch conducted a survey examining the location conditions as well as the construction and operation costs of data centers, a topic that is facing challenges as they are dispersed to rural areas. Due to its cold climate, ease of securing land, and concentration of human resources, Tohoku was evaluated as "suitable, similar to Hokkaido and Kyushu (which are considered promising locations)". To promote construction, it is recommended that "it is important to develop network and power infrastructure while taking advantage of geographical features and increasing cost competitiveness".
More than 80% of data centers in Japan are concentrated in the Kanto and Kansai regions, and due to the superior telecommunications infrastructure, concentrated development in cities such as Tokyo and Osaka is the norm. On the other hand, there is also expected to be an increase in decentralization to rural areas due to concerns about land depletion, avoiding tight electricity demand, and in view of post-disaster recovery. The Tohoku Branch of the Development Bank of Japan has released a "Survey on the Suitability of Data Centers in the Tohoku Region". The report states that Tohoku has "advantages such as distance from urban areas, low land prices, and a cool climate that can reduce cooling costs" and "can meet increasing energy demand thanks to artificial intelligence and other technologies".
Telecommunications networks are mainly built in urban areas, and communication speed is a barrier to locating in rural areas. In the Tohoku region, there are submarine cable stations in Miyagi and Akita, and there are plans to add a submarine cable between Ishikari and Akita, as well as install a new cable between Akita and Kyushu, enhancing the redundancy of communications infrastructure.
On the other hand, compared to other prospective locations, businesses are less likely to move there, and the lack of recognition as a suitable location is also a problem.
Daichi Tanozaki of the Tohoku branch of the Ministry of Finance, who is in charge of the survey, pointed out that "when a DC center is established, the surrounding environment will improve, which tends to lead to a chain reaction of investment in similar large facilities." It seems necessary to closely monitor future business expansion and related environmental development trends.
