Six Big Myths About Data Centers in Japan - And The Truth Behind Them
Data centers are big, they use power, and they operate behind layers of security. No wonder people are curious — and sometimes skeptical. But far from being mysterious energy drains, data centers are the backbone of Japan’s digital economy, powering everything from AI breakthroughs to online payments to e-commerce to education and medical research. Let’s clear the air about some of the myths that seem to persist about data centers.
The truth is that data centers and the computer applications they house serve many critical roles in our daily lives that extend far beyond the convenience of streaming our favorite movies and online shopping.
First, telecommunication networks that intersect within data centers have revolutionized communication, making it faster and more efficient to transmit data across geographic boundaries and fostering both personal and professional interactions across the globe via email, video conferencing, and social media. In this way, data centers have driven global connectivity, mobility, and personal and economic output way beyond the imagination of previous generations.
Second, even before the advent of AI, data centers have housed applications that have automated tasks and streamlined processes, increasing productivity across business, manufacturing, healthcare, and education, and allowing for more time to be spent on creative and strategic work that advances society.
Third, data centers continue to facilitate unparalleled access to information and educational materials, transforming how people learn and research, including online learning platforms and digital libraries. This has enabled the democratization of information for people irrespective of location or demographic. In scientific research specifically, the applications that data centers house allow for complex modeling, data analytics, and breakthroughs that can solve some of societies biggest challenges. And, with the benefit of AI, data centers are facilitating even more significant advancements in healthcare, improving diagnostics, treatment options, and patient care.
Last but not least, data centers power economic growth and innovation, contributing to job creation for both local communities and global economies. Below, we break down six of the biggest myths about data centers - and discuss what is true.
Myth #1: Data centers are bad for the environment - they use too much energy.
Fact: Yes – data centers require a substantial amount of power to be able to quickly and effectively serve the various roles we just discussed. However, by housing them in a single location, power and cooling can be delivered in a centralized and aggregated manner. This centralization enhances both power and cooling efficiency.
Data centers have a specific energy efficiency metric called PUE, or Power Usage Effectiveness. PUE defines a data center's energy efficiency by dividing the total energy a facility consumes by the energy used by its IT equipment. A lower PUE score indicates greater energy efficiency, with a PUE of 1.0 showing that 100% of the energy consumed by the facility is used by the IT equipment and no energy is lost to overhead operations. Introduced in 2007 to address growing energy concerns, PUE became a global standard for data centers by providing a consistent, simple way to benchmark performance, identify areas for energy savings, and track progress over time, thereby reducing operational costs and environmental impact.
Average PUE in Japan’s modern data centers is between 1.2 and 1.4, compared to legacy enterprise data centers with a PUE often above 2.0. This means that modern data centers like the type that Ada Infrastructure develops are significantly more energy efficient than data centers of the past. Pair this with the fact that hyperscalers are among the world’s largest corporate purchasers of renewable energy and drivers of clean energy, and the environmental story looks very different from the myth.
Beyond the direct energy usage by data centers, it’s important to acknowledge the efficiencies that data centers help drive in our everyday lives. These can work to offset the environmental footprint that data center operations create. For example, online banking and e-commerce help save time, resources, and fuel, and Amazon and Rakuten are among the most widely used websites in Japan.
Myth #2: AI is creating a surge in power demand that is going to overwhelm the grid.
Fact: While it is true that GPU servers used for AI consume a lot of power and generate significant heat, these servers typically use liquid cooling technology that is far more energy-efficient than air-based cooling.
Importantly, the increased demand for power that AI is driving is also prompting governments and utilities to modernize the grid. Japan has long been a leading innovator of energy efficient solutions that provide hedges against dependency on foreign oil and natural disasters, as well as competitive advantages and cost savings. The country has made significant investment in not only nuclear, but also clean energy technologies such as solar, hydroelectric, and geothermal. These innovations are in turn driving necessary upgrades to the transmission lines, building smarter, more resilient infrastructure.
While AI is adding to the demands for electricity, the operators in charge of the data centers supporting AI applications have the systems and resources necessary to operate independently and reduce strain on the grid during emergencies. In the aftermath of the 2011 9.0 earthquake in Japan, major data center operators stayed online due to the backup systems and onsite diesel fuel storage provisions.
Myth #3: Data centers waste a lot of water, depleting local resources.
Fact: It is true that the servers that run in data centers generate a lot of heat, and keeping them cool so they run efficiently is critical. That said, even the largest data centers can operate with zero evaporative water. Unlike open-loop HVAC systems that require continuous make-up water, closed-loop systems minimize water consumption by recycling the coolant.
By reducing water consumption and minimizing the release of contaminants, closed-loop systems help mitigate the environmental impact from data center operations.
Myth #4: Data centers do not create meaningful jobs.
Fact: Far from it. Microsoft, Amazon Web Services (AWS), Google, many other global data center operators (including Ada Infrastructure) are dedicating considerable resources into training programs that create pathways into high-paying careers in digital infrastructure. These are not just tech jobs - they include electricians, HVAC techs, facilities managers, network engineers, and more. Automation may help with operations, but people still run the show.
Those job numbers increase even more when taking the entire supply chain into consideration. According to an announcement by AWS, the company plans to invest 2.26 trillion yen into its existing cloud infrastructure in Tokyo and Osaka by 2027 to meet growing customer demand for cloud services in Japan. This is estimated to contribute 5.57 trillion yen to Japan’s Gross Domestic Product (GDP).
At Ada Infrastructure, we partner with universities and technical schools around the world – including Japan – to help open the door to careers in digital infrastructure. These programs include under-represented demographics to help provide the next generation with opportunities in this fast-growing sector and support talent pipelines to keep pace with the country’s growing cloud and AI economy.
Myth #5: Data centers are just for big tech companies.
Fact: Nearly everyone and every industry relies on data centers, including healthcare, finance, transportation, education, construction, home appliances, retail, defense, emergency services, and even farming. If you use a device, it is powered by a data center somewhere.
Japan has a long history of technological innovation and adoption, standing today at the forefront of digital health and utilizing AI for early disease detection and personalized treatment plans. Its aging population has spurred innovation in areas like robotics, remote healthcare, and wearable technology to support the elderly and those with disabilities.
Robotic technology is also increasingly integrated into daily life, from assisting with manufacturing to performing tasks in offices, restaurants, and hospitals. Japanese homes are particularly known for incorporating advanced appliances like refrigerators with touchscreens, smart toilets, and air purifiers to enhance comfort and efficiency. IoT devices are also being implemented in other sectors, from factories to agriculture, to optimize resource management and improve efficiency.
Overall, Japan's focus on integrating technology into various aspects of life is improving the quality of life for its citizens and setting a global example for technological innovation and societal well-being.
Myth #6: Neighborhoods do not benefit from data centers
Fact: Data centers can bring significant benefits to local communities.
First, data centers are usually built in phases, and construction for larger projects can take years. During that time, contractors and vendors move into the area with their families alongside the actual data center operators. The same applies to related industries, such as equipment suppliers and network installers.
This influx leads to increased taxable sales in a region across dining and shopping and more active residential real estate activity. Inzai is a prime example, as Chiba New Town has seen the development of large shopping centers and completion of a second business hotel, driven in part by the activity that data center development brought to the area.
Japan’s technology sector is facing a critical skills shortage, and as local digital infrastructure drives demand for top talent, salaries are increasing in the tech industry. This includes roles associated with data centers across AI, cloud computing, and cybersecurity. As household income improves, families are also better positioned to invest in their children’s education and safer neighborhoods, leading to a long-term virtuous cycle.
The Bottom Line
At Ada Infrastructure, we believe Japan has the potential to set the standard in building digital infrastructure that is resilient, sustainable, and socially beneficial. Guided by the Japanese principle of mottainai, which conveys a sense of regret over waste, we strive to design data centers to minimize waste, enhance efficiency, and deliver lasting value to the communities we serve.
By focusing on innovation, Japan’s data center industry can continue to power not just technology — but opportunity for society as a whole.
Resources:
https://www.tepco.co.jp/en/challenge/energy/power-s-e.html
https://www.elinext.com/industries/healthcare/trends/japanese-health-technologies/
https://www.appliedclinicaltrialsonline.com/view/is-japan-leading-a-new-digital-health-movement-
2025 Japan IT and Technology Salary Guide | Robert Half
Data Centers Japan
Mozan is a seasoned data center professional with extensive experience managing operations globally across the Asia Pacific region, Europe and the U.S. He leads Ada's Japan region after 6 years at AWS as APAC director of data center capacity and delivery where he oversaw a large data center portfolio across ten countries. Prior to AWS, Mozan spent eight years at Yahoo in Silicon Valley as head of data center development and delivery globally.