News
KDDI to repurpose Sharp Sakai plant for AI data center ahead of SoftBank
Thursday, January 22, 2026 at 08:33 AM
KDDI will repurpose Sharp's Sakai plant into an AI data center, moving ahead of SoftBank's similar initiative at the same site. The project aims for rapid deployment of AI infrastructure by utilizing existing industrial facilities.
Context
KDDI has accelerated plans to repurpose Sharp’s Sakai LCD plant into a high-performance AI data center, aiming to begin operations in late 2024. This move positions KDDI ahead of rival SoftBank Group, which is also developing a massive AI hub at the same location. By leveraging existing power infrastructure from the former liquid crystal display facility owned by Foxconn subsidiary Sharp, KDDI intends to rapidly scale domestic compute capacity to meet surging demand for generative AI training.
The project involves a strategic collaboration with Super Micro Computer, with the site expected to host NVIDIA’s advanced Blackwell-architecture chips. While SoftBank plans a larger long-term investment at the site, KDDI is prioritizing speed-to-market to capture early enterprise demand. This development underscores the aggressive shift in Japan’s electronics sector as legacy manufacturing plants are transitioned into critical infrastructure for the global AI supply chain.
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