Strengthening Digital Infrastructure to Drive Investment: Key Insights from the GDS2025 World Digital Summit

The second day of the GDS2025 World Digital Summit, hosted by the Nikkei Inc., featured a critical panel discussion on the development of digital infrastructure to support the implementation of artificial intelligence (AI). Leading industry figures, including Naoki Shibuya, President of NTT East Japan, and Takuro Ikagawa, Senior Officer at the Ministry of Internal Affairs and Communications, took part in the discussion. The panel addressed key challenges related to digital infrastructure and its vital role in the evolution of Japan’s AI landscape.

the Discussion

The discussion at the summit highlighted several pressing issues concerning the growth of Japan’s digital infrastructure. Over the past five years, domestic communication traffic has tripled, surpassing Europe’s scale, presenting both a challenge and an opportunity, as noted by Naoki Shibuya. The rapid increase in demand, paired with the aging infrastructure, necessitates robust investments to maintain and upgrade digital networks. One significant point raised during the discussion was Japan’s vulnerability to natural disasters. Over 80% of the nation’s data centers are concentrated in the Kanto and Kansai regions, leaving them at risk in the event of a major earthquake. Professor Hiroshi Ezaki of the University of Tokyo emphasized the need for decentralization of data centers to regions like Hokkaido and Kyushu, where geographical factors like lower temperatures and better solar power potential can be leveraged.

Energy consumption is another critical issue, with Japan’s data centers consuming nearly 5% of the country’s electricity. Professor Ezaki argued that utilizing decarbonized energy is essential for Japan’s national security, given the country’s low energy self-sufficiency. Companies like NTT East Japan have shown interest in developing data centers with renewable energy in mind. Shibuya noted that regions such as Hokkaido and Kyushu, with their natural advantages, should be utilized in the construction of data centers.

One of the biggest challenges discussed was Japan’s digital deficit, which surpassed ¥6 trillion in 2024. The lack of global recognition of Japan’s digital competitiveness was also raised, with Ikagawa noting that the country is not yet seen as a global leader in digital usage. He stressed the importance of expanding Japan-originated technology internationally. Despite this, Japan’s infrastructure quality remains highly rated, especially in terms of information security. As Professor Ezaki pointed out, some Southeast Asian countries are even asking to store sensitive data in Japan due to its reputation for secure infrastructure.

What Undercode Says:

The digital infrastructure in Japan is undoubtedly a cornerstone for future growth, particularly in the context of AI and the country’s global competitiveness. However, the aging infrastructure and the concentration of data centers in a few regions expose Japan to significant risks. The decentralization and upgrade of the country’s digital networks are urgent priorities. With the rise of AI, it is more crucial than ever that Japan stays at the forefront of innovation by ensuring a robust and resilient digital foundation.

Japan’s digital deficits point to the need for not just technological improvements but also strategic international expansion of its digital capabilities. Shifting the narrative from a passive consumer of technology to an exporter of Japanese digital solutions is pivotal. Japan’s leadership in AI could be strengthened by leveraging its secure infrastructure and its advanced R\&D in AI applications for social challenges, such as aging populations and decreasing birth rates.

Renewable energy adoption for digital infrastructure will continue to be a game-changer. The reliance on sustainable energy sources for data centers will not only contribute to solving Japan’s energy security but will also make the country more attractive as a global digital hub.

Moreover, as digital infrastructure becomes more integrated with AI development, it is essential that the investment in both sectors be treated as a unified challenge, not as isolated entities. Innovation in AI cannot outpace the digital infrastructure that supports it; thus, comprehensive long-term plans must be established to address both.

🔍 Fact Checker Results:

Fact 1: Japan’s communication traffic has indeed tripled in the past five years, placing its digital infrastructure under increasing strain.

Fact 2: Approximately 80% of

Fact 3:

📊 Prediction:

As the global demand for AI-driven solutions grows, Japan will likely see an influx of investments aimed at modernizing its digital infrastructure. Over the next five years, there is a strong possibility that the country will emerge as a central hub for AI and digital technology. Japan’s commitment to renewable energy in data center development will position it as a leader in sustainable tech solutions, further boosting its global competitiveness.