Tokyo Electric Power Co. Holdings (TEPCO) plans to invest 470 billion yen (approximately $3.24 billion) in bolstering its power transmission infrastructure over the next five years, as Japan gears up for a surge in electricity demand driven by data centers and semiconductor plants, Nikkei reported. This investment, which triples TEPCO’s spending from the previous five years, underscores the growing energy needs of Japan’s expanding tech sector.
By 2030, TEPCO’s subsidiary, TEPCO Power Grid, intends to build 18 large-scale substations nationwide, with eight located in the Tokyo metropolitan area. These substations are critical for meeting the increased electricity demands, especially in regions like Inzai, Chiba, where the first new substation in 24 years was recently opened. This facility is expected to increase power supply capacity to the area by 1.5 times.
The rise in data centers and chip manufacturing plants across Japan, particularly in Kyushu and Hokkaido, has created additional pressure on the country’s aging power grid. For instance, Kyushu Electric Power is expanding substations in Kumamoto to support Taiwan Semiconductor Manufacturing Co.’s (TSMC) new facilities, while Hokkaido Electric Power plans to build a substation to cater to Japanese chipmaker Rapidus.
Japan’s overall power consumption, which had been declining, is projected to rise by 4% over the next decade, driven largely by the energy demands of new technology infrastructure. The Japanese government is also planning significant investments to enhance the national grid, aiming to facilitate the distribution of renewable energy across regions.
