Sharp and KDDI to Transform Sakai Factory into AI Data Hub Amid Shifting Partnership Modes
Sharp Corporation (headquarters: Sakai City, Osaka, “Sharp”), a subsidiary of Hon Hai Technology (Foxconn) Group, jointly announced with KDDI (headquarters: Chiyoda-Ku, Tokyo) on December 9, 2024 that they have entered into the memorandum of understanding to accelerate AI data center (“AI Data Center”) operation at Green Front Sakai, the former factory site of Sharp in Sakai, Osaka.
KDDI will acquire the land, buildings, and electrical facilities of the site from Sharp, with the aim of commencing construction of the AI Data Center by the end of March 2025 and putting the center into full-scale operation by the end of March 2026.
Sharp will establish a business structure centering its Brand Businesses by implementing asset-light initiatives through the sale of the site, and will work closely with KDDI to ensure the early commencement of operations as soon as possible, according to the press release, which also said Sharp and KDDI have in parallel decided to withdraw from the discussion with Super Micro Computer Inc. (headquarters: California, USA, “Supermicro”), and Datasection Inc. (headquarters: Shinagawa-ku, Tokyo, “Datasection”). However, KDDI “will continue the existing collaboration with Supermicro and Datasection to build and operate the AI Data Center”.
Sharp first announced its intent to build an AI Data Center with KDDI, Supermicro, and Datasection in June 2024, citing the growing demand for large-scale AI computing capabilities. The initial plan involved integrating NVIDIA’s cutting-edge AI platforms and leveraging Supermicro’s expertise in managing heat generation. However, the project faced delays in procuring NVIDIA’s advanced GPUs, implementing efficient cooling systems, and securing the necessary infrastructure. Compounding the delays, Supermicro encountered an accounting issue, requiring the company to meet a critical financial reporting deadline by February 2025 to avoid delisting.
Vision for Sustainability and Collaboration
Sharp and KDDI aim to leverage the AI Data Center to drive innovation and sustainability across industries. The center is expected to play a vital role in revitalizing Japan’s economy by fostering partnerships with business leaders across diverse sectors.
This collaboration underscores Sharp and KDDI’s commitment to addressing the challenges of AI-driven data processing while contributing to Japan’s technological advancement and sustainability goals.