Japanese electronics giant Sharp and telecom partner KDDI have announced plans to convert a Sharp factory site into a state-of-the-art data center for artificial intelligence, powered by advanced Nvidia chips. This strategic move, reported by Nikkei, highlights the growing demand for AI infrastructure in Japan.
The collaboration, set to include other partners like Japanese systems developer Datasection, aims to create a joint venture to establish the data center. While the size of the investment and the ownership structure are yet to be finalized, the project underscores the commitment to enhancing AI capabilities in the region.
The data center will feature approximately 1,000 servers equipped with next-generation Nvidia graphics processing units (GPUs), including the highly anticipated Blackwell series. These servers will be sourced through Datasection’s partnership with U.S. server builder Super Micro Computer.
KDDI will spearhead the construction and operation of the data center network, which will be located on the site of Sharp’s soon-to-close LCD television panel factory in Sakai, near Osaka. This site transformation is part of Sharp’s broader strategy to repurpose its assets to align with emerging technological trends.
The new data center will cater to developers of large-scale language models, which underpin generative AI programs like ChatGPT. Nvidia’s Blackwell GPUs, slated for full-scale shipments later this year, promise significant advancements in computing performance and energy efficiency, making them ideal for high-demand AI applications.
According to Datasection, this procurement will be one of the largest deployments of Nvidia’s Blackwell GPUs in Asia, marking a significant milestone in the region’s AI infrastructure development. Nvidia, which held a commanding 77% share of the global market for AI data center chips last year, continues to be a critical player in the sector.
Sharp originally invested around 430 billion yen ($2.7 billion) in the Sakai plant in 2009. However, operational challenges led to inconsistent performance, prompting the decision to close the factory by September this year. Sharp had previously indicated the potential conversion of the site into a data center, which is now moving forward with the partnership with KDDI.
This initiative represents a forward-thinking approach by Sharp and KDDI, aiming to position Japan at the forefront of AI technology and infrastructure development.
