NTT Data Corporation (NTT Data), 4R Energy Corporation (4R Energy) and Nissan Trading Corporation (Nissan Trading) will begin technical verification and equipment construction to enable data center Uninterrupted power supply (UPS) systems to participate in Japan’s supply-demand adjustment market, with operations scheduled to start in fiscal 2027.
The initiative will be deployed at NTT Data-owned data centers nationwide, with plans to provide up to 50 MW of adjustment capacity annually by 2030. The companies said the project will be the first in Japan to use data center UPS systems as a supply-demand adjustment resource.
According to an NTT Data press release, the project will use UPS equipment installed at NTT Data’s domestic data centers to provide electricity balancing capacity. By adjusting charging and discharging operations based on grid conditions, the companies aim to help stabilize the power system as electricity demand from AI-related data center operations continues to grow.
Under the planned system, UPS units will charge when electricity supply is sufficient and discharge stored power when demand rises and the grid requires support. This will allow data centers, which have traditionally been major electricity consumers, to play a role in balancing the power network.
The project will also repurpose upgraded UPS systems that have reached the end of their primary operational use in data centers. In addition, reused EV batteries supplied by 4R Energy will be used as storage batteries for UPS systems, reducing the need for new battery production while expanding available storage capacity.
The companies are developing the system in response to two industry trends: rising electricity consumption from data centers driven by AI adoption and the increasing need for flexible grid management as renewable energy sources such as solar and wind become more widespread.
“Through this initiative, we will contribute to stabilizing the power system against the backdrop of increased power consumption in data centers due to increased demand for AI, and to realizing a resource recycling society by utilizing existing equipment,” the companies stated.
Electricity supply-demand adjustments have traditionally relied on power generation assets, but the companies said the market framework allows distributed resources, including storage batteries and electricity users, to contribute to grid stability.
NTT Data, 4R Energy and Nissan Trading plan to establish a reuse model for UPS equipment and EV batteries, verify control technologies, and expand the role of data centers as energy resources. The companies will also explore the use of container-type data centers equipped with GPU servers to support AI demand and provide flexibility based on regional power conditions.