Signal

Sources: NTT Data is in advanced talks to build an up to 500 MW data center for Anthropic in Osaka, among Japan's largest, potentially costing $6.3B

First reported by Asia.nikkei ·

The signal ●●○○ Compiled by AI from Asia.nikkei, Techmeme and The Information
Why you might care

AI companies are now building their own massive data centers instead of relying solely on cloud providers.

What happened

NTT Data Group is reportedly in advanced negotiations to construct a substantial data center in Osaka, Japan, for the AI company Anthropic. This facility is expected to have a capacity of up to 500 megawatts, making it one of the largest in Japan. The project's estimated cost could reach $6.3 billion, highlighting the significant investment required for AI infrastructure. The construction timeline suggests a partial opening could occur by 2028. This venture marks Anthropic's first dedicated data center in Japan, signaling a move to bolster its operational presence and computing power in the Asian market. The deal underscores the growing demand for specialized AI infrastructure and the significant financial commitments involved in meeting that demand.

What it means

This potential deal between NTT Data and Anthropic signifies a major shift in how leading AI companies are securing computing resources. Instead of solely relying on hyperscale cloud providers, Anthropic is opting for a dedicated, purpose-built facility. This strategy allows for greater control over hardware, power, and cooling, which are critical for optimizing AI workloads. The sheer scale of the proposed 500 MW data center indicates Anthropic's aggressive expansion plans and its commitment to establishing a significant physical footprint in Asia.

The partnership between a major Japanese infrastructure player like NTT Data and a prominent AI firm like Anthropic also points to the increasing geographic diversification of AI compute. As demand for AI processing grows globally, companies are seeking to build out capacity in various regions to ensure redundancy, reduce latency, and comply with data sovereignty regulations. This move by Anthropic could catalyze further investments in AI-specific data center development across Japan and the wider Asia-Pacific region.

AI-written summary. May contain errors.