Sharp Corp. is selling its former LCD manufacturing site in Sakai, Osaka to telecommunications provider KDDI Corp., marking the latest move in Japan’s push to expand its artificial intelligence infrastructure.
The deal includes land, buildings, and power equipment at the Sakai facility, which was previously Sharp’s main LCD panel production plant. KDDI plans to convert the site into an AI data center, with construction set to begin in the fiscal year ending March 2025.
The telecoms company aims to have the facility operational within fiscal 2025. Financial terms weren’t disclosed.
The agreement follows an earlier collaboration involving Sharp, KDDI, Super Micro Computer Inc., and Tokyo-based Data Section. While Super Micro and Data Section continue their partnership on the data center’s development, Sharp and KDDI are focusing on the property transaction.
For Sharp, owned by Taiwan’s Hon Hai Precision Industry Co., the sale aligns with its strategy to streamline assets and focus on brand-centric operations. The deal also accelerates KDDI’s expansion into AI infrastructure, as Japanese companies race to catch up in the growing field of artificial intelligence services.
