Investment in AI semiconductors and data centers is spreading to regional areas, driving the local economy around Rapidus's plant in Chitose while related projects in Iwate and Chiba expand.
The massive expansion of AI investment is beginning to drive the growth of related industries around Rapidus's cutting-edge semiconductor plant in Chitose, Hokkaido. This spillover is expected to boost demand for local banks, construction, logistics and housing.
In Kitakami, Iwate Prefecture, Kioxia Holdings is moving ahead with operations at its second manufacturing building (K2) in 2025 and construction of its third manufacturing building (K3), targeting operations in fiscal 2029. The investment is estimated at ¥1.8 trillion and is expected to generate spillover demand for semiconductor manufacturing equipment and materials, logistics, construction, housing and local financial institutions.
In Inzai, Chiba Prefecture, Google is proceeding with the opening of a data center, while NTT DATA Group plans a data center campus with approximately 250 MW of capacity and expects services to begin from 2030. In addition, one of Japan's largest AI data center projects has been announced in Chiba Prefecture, with phased operations expected to begin from 2028.
These developments are accompanied by a construction boom in AI data centers and could expand business opportunities for local companies and regional financial institutions through increased demand for power, construction and logistics.