TOKYO, Jun 07 (News On Japan) –
Japan’s digital financial system is dealing with a rising problem: a commerce deficit exceeding 7 trillion yen pushed by the surge in cloud companies and generative AI. Most of the software program and cloud instruments used each day on computer systems and smartphones are supplied by main abroad tech corporations, notably these based mostly within the United States.
As Japanese firms speed up digital transformation, their spending on overseas IT companies continues to rise, pushing the digital commerce deficit past 6 trillion yen in 2024. With additional development projected, the important thing to reversing this pattern lies within the growth and strategic use of home information facilities. These services, which assist each cloud infrastructure and generative AI applied sciences, are anticipated to generate 5 trillion yen in gross sales by 2027, whereas funding in constructing and increasing such facilities is projected to achieve 1 trillion yen over the identical interval.
The rising demand for home information facilities is drawing sturdy curiosity from overseas traders. However, whereas such funding helps broaden infrastructure, it additionally dangers sending income overseas, additional deepening Japan’s digital outflow. Another looming challenge is power consumption. About 90% of Japan’s information facilities are situated within the Tokyo and Kansai metropolitan areas, the place demand for digital companies is highest. The focus has led to critical pressure on energy provide. By fiscal 2037, electrical energy demand from information facilities within the Tokyo space alone is predicted to match that of a full-scale nuclear energy plant.
To tackle the imbalance between digital infrastructure and power provide, consideration is popping to so-called “W-bit integration”—an idea combining the “W” of watts (electrical energy) with “bits” of data. The plan goals to collectively develop the facility grid and information transmission community. NTT is creating high-speed optical communications expertise that might allow low-latency, high-capacity information transmission throughout lengthy distances. This might enable for the decentralization of information facilities away from city areas whereas nonetheless sustaining excessive efficiency. Optical fiber cables price solely a tenth of energy cables per kilometer, making such deployments sooner and extra economical.
Spreading information facilities throughout the nation utilizing superior fiber-optic networks might ease the burden on city energy provides and strengthen Japan’s digital competitiveness. As reporter Nakanishi notes, leveraging the newest applied sciences could also be Japan’s greatest hope of reversing its huge digital commerce deficit.
Source: テレ東BIZ