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Rapidus and SoftBank infrastructure projects drive rapid growth in power demand
Tuesday, February 3, 2026 at 08:18 PM
Rapidus and SoftBank are advancing large-scale projects that are driving a surge in Japanese power demand, reflecting the expansion of domestic semiconductor manufacturing and AI data center infrastructure.
Context
Japan’s semiconductor and AI landscape is undergoing a massive structural shift as SoftBank Group and state-backed Rapidus accelerate infrastructure projects in Hokkaido. Rapidus is set to begin trial production of 2nm logic chips in April 2025, targeting full-scale mass production by 2027. This fabrication facility, combined with SoftBank Group’s deployment of advanced AI data centers, is driving an unprecedented 12% projected increase in regional power demand by fiscal 2034, the highest growth rate in Japan.
This surge necessitates a rapid overhaul of the local energy grid, bringing the potential restart of the Tomari nuclear power plant and new offshore wind projects into focus. For investors, the scaling of the $500 billion "Stargate" infrastructure vision indicates that regional energy capacity has become a primary competitive bottleneck. The project’s success hinges on securing stable, high-capacity power to support the next generation of AI-specialized hardware and data processing hubs, transforming Hokkaido into a critical node in the global technology supply chain.
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