UAE weighs entry into Japan's AI data center race

August 07, 2026 (MLN): The United Arab Emirates is considering an investment of up to ¥1tr ($6.3bn) to develop an artificial intelligence data center in Japan, in a deal that would be led by Abu Dhabi's sovereign wealth fund, Mubadala Investment.

Mubadala would spearhead funding for the 500-megawatt facility planned in Akita Prefecture, with other foreign and domestic investors potentially joining the project, according to Bloomberg.

Once operational, the facility could rank as the largest data center in Japan, reflecting mounting global appetite for securing AI infrastructure in jurisdictions seen as relatively shielded from geopolitical risk.

Investment tied to the broader project including from suppliers and firms looking to set up operations nearby could climb as high as ¥2tr, with a consortium of Japanese companies expected to oversee construction and related infrastructure work.

Japan has increasingly drawn global investors as a stable, low-risk market amid escalating U.S.-China tensions and ongoing conflicts in Europe and the Middle East that continue to reshape global supply chains.

In response, the Japanese government is moving to designate Akita Prefecture and several other regions nationwide as priority investment zones for sectors such as AI data centers and semiconductor manufacturing, backed by substantial financial support for related ventures.

The strategy has already yielded tangible results, with major chipmakers including Taiwan Semiconductor Manufacturing Co., Tower Semiconductor and Micron Technology committing billions of dollars to operations in the country in recent years.

The UAE, for its part, has positioned itself among the foremost global investors in AI and its supporting infrastructure.

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