UAE weighs $6.3 billion investment in Japan’s largest AI data center

The United Arab Emirates is considering investing as much as ¥1 trillion, or approximately $6.3 billion, to construct an artificial intelligence data center in northern Japan.

Abu Dhabi sovereign wealth fund Mubadala Investment Company would lead the proposed 500 megawatt project in Akita prefecture, according to a person familiar with the discussions cited by Bloomberg. Other foreign and Japanese investors could also participate in the development.

The facility could become Japan’s largest data center once completed. Mubadala has not publicly confirmed the investment and declined to comment on the reported discussions.

Total investment connected to the project could reach as much as ¥2 trillion, or approximately $12.6 billion, as suppliers and other companies establish operations around the facility. A consortium of Japanese companies would likely oversee construction and supporting infrastructure.

Japan is working to attract private investment in artificial intelligence, semiconductor manufacturing, data centers, and other strategic industries.

The government’s AI and semiconductor support framework calls for more than ¥10 trillion in public funding through fiscal 2030. Japan expects the program to generate more than ¥50 trillion in combined public and private investment over a decade.

Akita is among the regions being considered for designation under an investment zone program intended to support projects in sectors including AI infrastructure, semiconductors, and energy.

Japan has already attracted major investments from semiconductor and technology companies as demand for computing infrastructure increases.

NTT Data Group, Japan’s largest data center operator, plans to spend at least $9 billion through 2033 to expand its computing capacity to one gigawatt. The expansion would add approximately 750 megawatts of capacity over seven years.

Microsoft also announced a $10 billion investment in Japan between 2026 and 2029 covering AI infrastructure, cybersecurity, and workforce development.

The proposed Akita project would extend Abu Dhabi’s investments in artificial intelligence infrastructure beyond the UAE.

Mubadala and Abu Dhabi based AI company G42 were the founding partners of MGX, an investment company established in 2024 to fund artificial intelligence and advanced technology projects.

MGX, the Artificial Intelligence Infrastructure Partnership, and BlackRock’s Global Infrastructure Partners completed their acquisition of Aligned Data Centers in July. The transaction valued the data center operator at approximately $40 billion, while the consortium committed an additional $5 billion to expand its AI ready capacity.