Google invest $690M for its first data center in Japan

reveals its plan to open its first data center in next year as part of the company’s wider and increased investment in the world’s third-largest economy.

The Times reported that a blog post was published on Thursday, Oct. 6, by Alphabet and Google CEO Sundar Pichai, confirming that the new facility is situated in Inzai, Chiba Prefecture.

According to Pichai, the firm’s ambitions to integrate into the international economy will be bolstered by opening its third Asian data center in Chiba. The other facilities are located in Taiwan and Singapore.

More Infrastructures to be Built

The plan is only a part of the tech group’s overall investment of $730 million in local infrastructure, which began in the previous year and will continue until the year 2024. Apart from this, Google is leading the development of a brand new undersea cable dubbed Topaz that will connect Japan and Canada.

The tech group currently has cloud regions in Tokyo and Osaka, which enable it to provide local companies services related to storage and infrastructure.

Yet, on the other hand, it is in the process of constructing its very own data center, which will serve all of the company’s services, including YouTube, Gmail, and the rest.

In a news report by Nikkei Asia, it is confirmed that the firm decided to spend ¥100 billion ($690m) in Japan through 2024 in order to capitalize on the expansion in the Asia-Pacific area.

“Google’s partnership in Japan is now deeper than ever,” said the CEO in a surprise appearance at a recent Google launch event in Tokyo. “Japan has a history of being at the forefront of the world’s most advanced technologies.”

The executive said that Google seeks to promote the digital transformation of Japanese enterprises via its cloud computing business. This is in addition to the firm’s objective, which is to boost the ease of internet services for Japanese consumers. He said he sees the potential in Japan to take the lead in digital transformation.

As part of his trip to Japan, the CEO will be meeting with Prime Minister Fumio Kishida to discuss Google’s investment ambitions in the country. This week, he already met with some student developers from local universities.

Respond to Economic Instability

Pichai told Nikkei Asia that the firm is “responding to the macroeconomic uncertainty.” He added, “As a business, we’ve always known ad spending is correlated to macroeconomic performance, and so we take that into account.”

Google to Slow Down the Pace of Hiring

The initiative is expected to speed up the operation of Google products and services while supporting economic activities and employment.

However, the CEO also mentioned that beginning in 2023. The group will moderate the pace of hiring. Despite that, it will continue to seek qualified candidates for key positions, particularly in product development and engineering, as well as other essential activities.

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