Sharp, KDDI eye launch of large-scale AI data center in Osaka Prefecture

OSAKA — Sharp Corp and Japanese telecom giant KDDI Corp plan to launch one of the largest artificial intelligence data centers in Asia by converting the electronics maker's liquid crystal display panel plant in Osaka Prefecture, the companies said Monday.

The data center is expected to be equipped with next-generation graphics processing units from U.S. semiconductor giant Nvidia Corp, according to a plan agreed upon by the two firms plus Japanese system development firm Datasection Inc and U.S. tech firm Super Micro Computer Inc.

The three Japanese companies will set up a joint venture to operate the data center, with KDDI taking part in building necessary networks and Datasection procuring GPUs from Nvidia via Super Micro.

The data center will be built utilizing Sharp's LCD panel plant in Sakai, Osaka Prefecture, which is scheduled to stop operations by the end of September after incurring losses in the face of intensified competition with Chinese and other rivals.

The former Sakai plant "will be able to provide adequate electric power and space to support the AI data center's electricity needs," KDDI said in a press release.

Sharp, a unit of Taiwan's Hon Hai Precision Industry Co, joins a growing number of tech firms that have announced plans to build or ramp up data centers in Japan to respond to expanding AI demand.

The Japanese unit of U.S. IT firm Oracle Corp said in April it would invest $8 billion to strengthen the capabilities of its data centers in Japan while Microsoft Corp said the same month it would invest $2.9 billion for similar purposes.

Amazon.com Inc.'s cloud computing service unit said in January that it would spend about 2 trillion yen in the country to strengthen its cloud infrastructure by 2027.

© KYODO