Money, money, money.
From Nikkei Asia, July 2:
AI demand prompts bolstering of substations, transformers and transmission lines
OSAKA -- Japan's power companies are investing heavily to bolster their grids, hoping to better accommodate the rush in data center construction as the use of artificial intelligence continues to grow.
Kansai Electric Power, through a transmission and distribution subsidiary, will invest over 150 billion yen ($1.04 billion) in infrastructure improvements from 2026, such as strengthening four substations around the Osaka area including in the cities of Minoh and Ikoma.
Substations transform the voltage of electricity generated at power plants so it can be delivered to businesses and homes. Kansai Transmission and Distribution will complete construction of new transformers at the four sites between 2027 and 2029, increasing the amount of electricity they can handle by about 30%. The company also plans to strengthen and build new power lines.
Data centers tend to be built in clusters where conditions like proximity to a big population, ease of acquiring land and low flood risk are met. Minoh and Ikoma are both home to a number of data centers.
When a data center is built, the surrounding power grid is strengthened to accommodate it, making it easier for other companies to build data centers there and accelerating concentration even further.
In eastern Japan, a transmission and distribution company under Tokyo Electric Power Co. Holdings (TEPCO) plans to invest over 200 billion yen to bolster the grid in northwestern Chiba prefecture -- which has seen a concentration of data centers -- by the early 2030s.
TEPCO Power Grid aims to build new substations in two locations and connect them by installing new power lines and replacing existing ones.
Google and other companies have built data centers in the area and 40 more are planned, pending improvements to the power grid....
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