Cloud & Data Center Convention 2023

POLICY INCENTIVES

DATA CENTER / DEVELOPMENT

SUBMARINE CABLE

• Develop DC in 10+ regional locations in 5 years

• Build a digital superhighway using submarine cables surrounding the islands of Japan in 3 years • Construct and disperse cable landing station to regional locations

Development plan

Existing funding (specific measures of realization)

 Ministry of Internal Affairs and Communications (MIC) Support for DC construction and projects related to distributing submarine cable landing station in regional locations (JPY50 billion). *Aid rate: 1/2, 4/5 (only for submarine cable) *Subject of support: DC (building, servers etc.), submarine cable, landing station, IX facility *Target area: outside Tokyo (submarine cables should be other than Pacific side)  Ministry of Economy, Trade and Industry (METI) Support for DC land development (JPY526 billion)

• Development of maximum 5 to 7 large scale DC locations (expect to stimulate further DC developments led by private sector)

• Completion of submarine cable network encircling Japan • Development of several new landing stations

Measure effects (such as number of possible developments)

IN FUTURE: Promote dissemination of DC, submarine cable, IX in regional locations for: o Building a robust digital infrastructure through decentralization to make Japan a data hub that can safely and securely store and process personal and sensitive information. o Revitalizing rural areas through the development of digital infrastructure and improving the efficiency of data distribution within the region.

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Source: Ministry of Economy, Trade and Industry, Ministry of Internal Affairs and Communication, C&W Research

Cushman & Wakefield