Electronics giant Sharp Corporation and telecommunications leader KDDI Corporation are teaming up to launch one of the largest artificial intelligence (AI) data centers in Asia. The facility will be built by repurposing Sharp’s liquid crystal display (LCD) panel plant in Osaka Prefecture.
The data center is slated to be equipped with cutting-edge graphics processing units (GPUs) from Nvidia Corporation, a leading U.S. semiconductor manufacturer. This plan is part of a joint agreement between Sharp, KDDI, Japanese system developer Datasection Inc., and U.S. tech firm Super Micro Computer Inc.
To manage the data center, a joint venture will be established by the three Japanese companies. KDDI will contribute by building the necessary network infrastructure, while Datasection will handle procuring the GPUs from Nvidia through Super Micro.
Sharp’s Sakai plant in Osaka Prefecture, which is scheduled to cease operations by September due to competition, will be repurposed for the data center project. According to a KDDI press release, the former plant boasts “adequate electric power and space to support the AI data center’s electricity needs.”
Sharp’s foray into the data center industry reflects a broader trend within the tech sector. Several major companies have unveiled a bold plan to invest in Japan. That includes Amazon Web Services (AWS) which announced plans to invest 2.3 trillion yen (approximately $15.5 billion) in the country over the next five years, signaling a strategic push to bolster its data center infrastructure.
Moreover, Microsoft also announced a significant investment of US$2.9 billion over the next two years to bolster its hyperscale cloud computing and AI infrastructure in Japan.