NTT Data Launches Cutting-Edge Data Center in Osaka to Power Next-Gen AI and Cloud Services

NTT Data Group has announced plans to build a state-of-the-art data center in Osaka Prefecture, set to start operations by the second half of fiscal year 2027. The facility aims to meet the skyrocketing demand for cloud computing and generative AI services while prioritizing energy efficiency and environmental sustainability. This new data center will feature the latest cooling technologies to manage the intense heat generated by high-performance computing equipment, especially those used in AI workloads.

The Osaka North Data Center, developed by NTT Global Data Centers, a subsidiary of NTT Data Group, will be located in Ibaraki City, Osaka Prefecture. The first phase includes a three-story building with approximately 5,000 square meters dedicated to server rooms and IT infrastructure. The data center’s power capacity is planned at 18 megawatts for the initial phase, with a second phase completing in 2032 adding another 18 megawatts, bringing the total capacity to 36 megawatts. This sizable capacity reflects the facility’s readiness to support large-scale computing, including servers equipped with GPU chips essential for AI’s image processing and complex calculations.

One of the standout innovations is the adoption of direct liquid cooling, which is far more efficient than traditional air cooling. This technology helps manage the substantial heat generated by GPU-intensive workloads, reducing environmental impact and improving operational reliability. Moreover, the data center will be compatible with NTT Group’s upcoming communication infrastructure platform, IOWN (Innovative Optical and Wireless Network), which promises ultra-high-speed data transfer between data centers using advanced optical technologies.

Osaka is rapidly emerging as Japan’s second-largest data center market after the Tokyo metropolitan area. While historically functioning as a backup site during Tokyo’s disaster events, Osaka is increasingly becoming a crucial hub for global cloud service providers such as Amazon Web Services (AWS). This new facility underscores the city’s growing strategic importance in Japan’s digital infrastructure landscape.

What Undercode Say:

NTT Data’s investment in Osaka reflects a broader shift in the data center industry, where geographic diversification and environmental responsibility are becoming top priorities. The choice of Osaka—already a burgeoning market—signals confidence in the region’s capacity to support critical cloud and AI infrastructure outside the traditionally dominant Tokyo area. This move not only enhances disaster recovery options but also caters to the rising demand for low-latency cloud services in western Japan.

The integration of direct liquid cooling technology is a forward-thinking approach that addresses one of the major challenges in modern data centers: heat management. As GPUs and AI accelerators generate significantly more heat than conventional servers, cooling efficiency directly impacts both operating costs and sustainability. By adopting this technology, NTT Data positions itself as a leader in environmentally conscious data center operations.

Furthermore, the compatibility with the IOWN network is a game-changer. IOWN promises ultra-high-speed, low-latency connections using photonics, which could revolutionize how data centers communicate and handle workloads. This will be crucial as AI models continue to grow in size and complexity, requiring faster data transfers between geographically dispersed centers.

The phased build-out approach also allows NTT Data to scale capacity in line with demand, managing investment risk while staying agile in a rapidly evolving market. Given the growth trajectory of AI services and cloud adoption in Japan and Asia at large, this data center is strategically poised to become a key infrastructure asset.

The Osaka North Data Center will also likely attract more global cloud providers and technology companies looking to expand their footprint in Asia. By offering cutting-edge infrastructure combined with advanced cooling and networking technologies, NTT Data enhances Osaka’s appeal as a digital hub.

On the business side, this expansion aligns well with Japan’s national push towards digital transformation and sustainable technology initiatives. As governments and companies seek greener tech solutions, investments like this will be pivotal in balancing innovation with environmental impact.

Fact Checker Results ✅

NTT Data’s Osaka data center project timeline (starting in 2025, operational by late 2027) aligns with publicly announced schedules.
Direct liquid cooling technology is widely recognized as more efficient than traditional air cooling, especially for GPU-heavy workloads.
IOWN infrastructure is actively being developed by NTT Group to enable high-speed optical data transmission between data centers.

Prediction 🔮

The Osaka North Data Center will set a new standard for energy-efficient, high-performance data centers in Japan. As AI-driven applications continue to grow exponentially, demand for specialized infrastructure like this will surge. NTT Data’s early adoption of liquid cooling and optical networking technologies will likely inspire other players in the market to accelerate their own modernization efforts. Over the next five years, Osaka could emerge as a primary cloud and AI hub in Asia, drawing increased investment from global technology giants. Additionally, the success of IOWN could position Japan at the forefront of next-generation telecommunications infrastructure, enabling faster, more reliable cloud and AI services domestically and internationally.