Utsunomiya City selected a Mitsubishi Estate-led group as the preferred negotiating party in a public solicitation for a data-centre project to be developed on land adjoining the south side of the New Tochigi Substation. Total project costs are expected to be approximately ¥1 trillion, with 4 buildings targeted for operation after completion.
Utsunomiya City received proposals from 5 groups in response to its public solicitation and, based on the evaluation by its review committee, selected a Mitsubishi Estate-led group as the preferred negotiating party. The group’s development track record and the specificity of its project schedule were among the factors assessed.
The data centre is expected to have a scale equivalent to the New Tochigi Substation’s maximum power supply of 400 MW, with 4 buildings planned for a development site of approximately 370,000 square metres in the northern part of the city. The project will proceed without a financial burden on the city, as the operator will acquire the land.
Under the published schedule, the basic agreement is targeted for conclusion by the end of October and the memorandum of understanding by the end of March 2027. Site preparation work is then scheduled to begin in FY2028, the facilities are to begin operating in stages from FY2030, and all 4 buildings are targeted to be operational in FY2035.
Total project costs are expected to be approximately ¥1 trillion. Property-tax revenue after completion is estimated at approximately ¥8 billion, the economic impact during the development phase at approximately ¥24 billion, and approximately 100 jobs are expected to be created after completion.