Blind spots in Japan's regulations governing the deployment of next-generation AI servers, along with moves toward deregulation, have come to light. Key issues affecting investment-location options include the 1,000-liter limit, 800-volt DC power distribution and the treatment of battery storage.
Based on reporting by The Nikkei, a key obstacle to deploying next-generation AI servers in Japan is the battery-storage regulation established during the Showa era, which limits aggregate volume to 1,000 liters, together with the resulting increase in power consumption. Current-generation server racks consume around 150 kW, while the Rubin generation, which is moving toward mass production, could exceed 200 kW, and Rubin Ultra could reach at least 600 kW. These power requirements will have a major impact on data-center design and the way electricity is supplied.
The electrolyte contained inside battery-storage systems is classified as a Class 2 petroleum product, a hazardous material under the Fire Service Act. Once the designated quantity exceeds 1,000 liters, handling requirements become stricter. Under current practice, the rules can be avoided by dividing the site into separate areas, but this can disrupt security routes and increase maintenance costs. The Japan Data Center Association is calling for the introduction of safety assessments based on UL9540A and is advancing efforts to align Japan's regulations with those in Europe and the United States.
The government has set out a relaxation policy in the recommendations and implementation plan of the Regulatory Reform Council. It has indicated that it will align testing standards for battery storage with UL9540A and consider exempting battery storage volumes from the applicable limits under the Building Standards Act. In addition, constructive consideration is expected to continue regarding water-based fire-suppression systems and the treatment of 800-volt DC power, potentially encouraging overseas companies to establish operations in Japan.
Challenges remain, however. The development of testing facilities in Japan to demonstrate compliance with UL9540A, as well as clarification of the legal and technical standards for 800-volt DC power, has not yet been completed. Rubin Ultra is expected to be introduced around 2027. Given the lead times for design, approval applications and construction, delays during the transition could affect the pace of business expansion.