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Mitsui to invest $2.7bn to develop data centers in Japan by 2026

Trading company leads charge as government backs key 5G infrastructure

Mitsui & Co. is leading the private sector in developing data centers. (Source photos by screenshot from Mitsui & Co.'s website and Reuters)  

TOKYO -- The construction of large data centers is gathering speed in Japan, with Mitsui & Co. leading the private sector, after the government of Prime Minister Yoshihide Suga committed to backing the development of key 5G network infrastructure in hopes of turning the nation into Asia's hub for such services.

Demand for data centers is soaring, but the supply had been limited by the shortage of appropriate construction sites and high electricity costs. The government is now trying to expand supply by offering financial support and tax incentives, as it views the development of such infrastructure as a national security priority.

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