TOKYO -- Mitsubishi Corp. plans to build roughly 10 data centers in Japan by 2022 at a cost of 200 billion yen ($1.76 billion) -- one of the largest such investments in the country -- to meet surging demand for information storage.
The Tokyo-based trading house will form a joint venture with U.S. data center operator Digital Realty Trust for the undertaking. Based in California, Digital Realty has a portfolio of over 150 facilities, mostly in America. Its clients include such technology giants as IBM, Facebook and Oracle.
The amount of global cloud data is projected to balloon 13 times between 2015 and 2025, with the multiple seen climbing to 49 by 2030. But large data centers are rare in Japan, meaning that data from overseas usually reaches Japan via data centers abroad. Many Japanese companies now seek to find data storage solutions at home, out of a concern about data security.
Mitsubishi envisions Digital Realty customers using the data centers. It estimates that these facilities will generate sales of around 20 billion yen to 30 billion yen in 2022. The Japanese company may spend an additional 300 billion yen in the medium term.
Because data centers need to be built on sites with strong foundations, Mitsubishi will leverage its know-how in real estate development to construct sturdy buildings.
With Japan undergoing an information technology boom -- entailing everything from e-commerce to autonomous driving -- some fear a slowdown in data transmission when using overseas data centers.