UAE sovereign wealth fund weighing $6.3 billion investment in new AI data center campus in Japan.
The United Arab Emirates is considering investing as much as ¥1 trillion (US$6.33 billion) to build an artificial intelligence data center in Japan. Abu Dhabi's sovereign wealth fund Mubadala Investment Co would lead the investment into a 500-megawatt project in Akita Prefecture in northern Japan, which may include other foreign and domestic investors. Once completed, the facility could become the largest data center in Japan.
The talks underscore growing global interest in securing critical AI assets in countries viewed as relatively insulated from geopolitical tensions. Total investment surrounding the project, including by suppliers and other companies looking to establish operations nearby, could reach as much as ¥2 trillion. A consortium of Japanese companies would likely handle construction and related infrastructure.
As US-China tensions escalate and wars in Europe and the Middle East reshape supply chains, Japan is increasingly viewed by global investors as a stable market with relatively low geopolitical risks. To attract funding in strategic industries, the Japanese government is designating several regions, including Akita, across the country as priority investment zones for sectors such as AI data centers and semiconductor manufacturing. The government has also allocated massive financial support for related ventures.
Tokyo's approach has yielded substantial results. Major chip firms including Taiwan Semiconductor Manufacturing Co, Tower Semiconductor Ltd and Micron Technology Inc have invested billions of dollars in the country.
Meanwhile, the oil-rich UAE has emerged as one of the leading global investors in AI and its underlying infrastructure. State-backed investor MGX, a joint venture between Mubadala and G42, has been a key vehicle for Abu Dhabi's AI bets. MGX last month completed its acquisition of Aligned Data Centers, which has an enterprise value of US$40 billion, alongside BlackRock Inc's Global Infrastructure Platform and the Artificial Intelligence Infrastructure Partnership.