• KDDI has been developing its AI datacentre in Sakai City for two years already
• HPE has landed a key role at the facility, which is due to come online in 2026
• The vendor is building the Nvidia tech-based server racks and supplying its hybrid cooling technology 

Just a day after boasting an expanded relationship with AI tech giant Nvidia, everyone’s must-have partner these days, IT and networking infrastructure giant HPE has announced a key reference deal to help Japanese telco KDDI build its landmark, Nvidia-powered AI datacentre in Sakai City within the Osaka Prefecture of Japan. 

KDDI announced its plan two years ago to build the Osaka Sakai datacentre, which it described at the time as “the largest AI datacentre in Asia”, on part of the site of a former Sharp LCD screen production plant that provided the space and power supplies needed to efficiently run state-of-the-art AI compute stacks. The deal to acquire the land, though, was only completed in April this year. 

At the time, Supermicro was cited as its primary infrastructure partner, tasked with delivering an Nvidia-based stack “capable of managing heat generation efficiently”, but now it seems HPE is in that driving seat. HPE will build and deploy a rack-scale system featuring the Nvidia GB200 NVL72 platform – which includes Nvidia networking (Quantum-2 InfiniBand, Spectrum-X Ethernet, Bluefield-3 data processing units) and AI Enterprise software – based on the latest Nvidia Blackwell graphics processing unit (GPU) architecture. 

HPE will also supply its hybrid cooling technology, which “combines air cooling and direct liquid cooling, to reduce the facility’s environmental impact,” added KDDI, which will collaborate with HPE on the promotion of the resulting AI services to customers in Japan and internationally. KDDI plans to offer AI services through its WakonX platform, which offers cloud-based services tailored to the specific needs of enterprise verticals.   

“We are pleased to embark on the upcoming deployment of a high-performance GPU infrastructure at our Osaka Sakai datacentre through our collaboration with HPE,” stated KDDI’s president and CEO Hiromichi Matsuda. “HPE’s deep expertise in supercomputing and advanced cooling technologies will be instrumental in driving the evolution of next-generation AI datacentres. Together with a passionate partner like HPE, we are excited to take on the challenge of shaping a sustainable future where we coexist with AI.”

HPE’s president and CEO, Antonio Neri, added: "Our collaboration with KDDI marks a pivotal milestone in supporting Japan’s AI innovation, delivering powerful computing capabilities that will enable smarter solutions, contributing to greater productivity, and further advancing technological leadership. The Osaka Sakai datacentre will benefit from HPE’s industry-leading cooling expertise, which powers high-performance AI systems while significantly reducing environmental impact. We look forward to partnering with KDDI on their bold vision to unlock new possibilities for customers on their AI journeys.”

And following a partnership agreement struck by KDDI with internet access and cloud service provider Sakura Internet and Tokyo-based GPU-as-a-service specialist HighReso (aka Hi-Res) in April, the Osaka Sakai datacentre will also be used to develop a system that enables the “stable and rapid mutual use of GPUs” to meet growing demand, with Sakura Internet providing its cloud service for generative AI (GenAI) workloads and HighReso providing its low-cost GPUSOROBAN GPUaaS offering.    

“KDDI will provide multicloud, multi-LLM and GPU services through WakonX, a business platform for the AI ​​era that will drive digitalisation in Japan,” noted Yasuaki Kuwahara, executive VP and representative director of KDDI’s business operations division in this announcement (in Japanese). “As AI becomes more important as a social infrastructure, it is essential to provide stable GPUs. By collaborating with Sakura Internet and Hi-Res, we will provide optimal GPUs to many customers, startups, and AI development companies, contributing to the development and competitiveness of domestic industries.”

KDDI isn’t the only Japanese telco that has acquired land for AI datacentre construction on the former LCD plant in Sakai City: SoftBank Corp also struck a land-purchase agreement with Sharp in March this year and plans to have its facility up and running by the end of 2026. 

- Ray Le Maistre, Editorial Director, TelecomTV