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Japan-Update

NEC to build data centers as cloud business booms

Japanese service providers see 80% rise in sales in four years

An NEC data center in Kobe.

TOKYO -- NEC will spend 20 billion yen ($184 million) to build two data centers to support a cloud business that is exploding thanks to demand from U.S. technology companies.

Japanese peers are seeing a similar boom. Cloud-related sales at five major service providers -- NEC, FujitsuNTT DataItochu Techno-Solutions and NS Solutions are projected to total 826 billion yen in fiscal 2017, an 80% jump from fiscal 2013.

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