AirTrunk plans to build a second hyperscale data centre in Osaka, expanding what the company describes as Japan’s largest hyperscale data centre platform to about 530MW of capacity and lifting its planned investment in the country and other markets to roughly USD $8 billion.

The new facility, known as OSK2, will be located in East Osaka and will provide up to 100MW of total campus IT capacity. It will sit alongside AirTrunk’s existing OSK1 site in West Osaka, which has a capacity of 20MW. The company said the twin sites would provide regional diversity and resilience in the Kansai region, which includes Japan’s second-largest metropolitan area.

OSK2 will be AirTrunk’s 14th data centre across six markets in Asia Pacific and the Middle East. The group’s platform will exceed 2 gigawatts of total capacity from existing data centres with secured power once the latest project is complete.

AirTrunk positions the expansion as part of a wider build-out of infrastructure for global cloud providers and artificial intelligence workloads. Osaka has emerged as a key secondary region for international and domestic cloud platforms that already operate large clusters in and around Tokyo.

Robin Khuda, Founder & CEO of AirTrunk, said Osaka and Tokyo sit at the centre of the group’s regional strategy.

“Japan plays a pivotal role in AirTrunk’s platform growth across Asia-Pacific. As Japan’s cloud and AI adoption accelerates, our continued investment in Osaka and Tokyo reflects our long-term commitment to building the scalable infrastructure that underpins this transformation. Japan is not only a key market for us, but a partner in shaping the future of hyperscale and AI innovation. AirTrunk’s Japan investment is one of the largest investments by an Australian company and brings Australia closer to Japan,” said Robin Khuda, Founder & CEO, AirTrunk.

AirTrunk focuses on large-scale data centres for global technology companies that run cloud services, data-intensive applications and AI training. Hyperscale facilities typically serve a small number of very large customers, such as cloud, content and internet platforms.

Rising Japan exposure

The company said the 530MW platform figure reflects its Japan footprint once existing and planned projects are complete. The USD $8 billion programme spans Japan and other markets in Asia Pacific and the Middle East. It covers both current facilities and projects that are in the planning and development pipeline.

Since entering Japan, AirTrunk said it has invested about USD $1.57 billion. It stated that this spending has generated thousands of jobs during the construction phases and in ongoing operations. It has also worked with local contractors and suppliers in Japan, which the company said has contributed to regional economic activity.

Headcount in Japan is also increasing. AirTrunk recently opened a new national headquarters in Tokyo’s Roppongi Hills Mori Tower. The company said the new office space is roughly three times larger than its previous premises and reflects rapid local team growth. AirTrunk currently employs more than 100 people in Japan. It plans to double this number in the near term as it extends its hyperscale footprint and develops new services for customers.

AI and cloud demand

The Osaka expansion comes as demand for cloud services and AI processing rises in Japan. Global cloud and internet firms have been adding regions and availability zones in the country. They are responding to regulatory requirements for data residency and low-latency access for domestic users.

AirTrunk Country Head, Japan, Nori Matsushita, said OSK2 marks a further step in the company’s local growth plans.

“OSK2 represents a significant milestone in our commitment to Japan. By expanding in Osaka, we’re not only meeting the growing demand for hyperscale and AI infrastructure, but also creating new opportunities for local talent, suppliers, and communities. This investment strengthens Japan’s position as a digital leader in Asia-Pacific and ensures our customers have the resilient, scalable capacity they need to innovate,” said Nori Matsushita, Country Head, Japan, AirTrunk.

Japan’s government has placed digital infrastructure and AI at the centre of several national strategies, including Society 5.0 and the Priority Plan for Digital Society. Policymakers want wider adoption of cloud, data analytics and AI systems across public services and industry, along with cross-border technology partnerships.

AirTrunk links its investment to these national policies and to longer-term plans for economic growth that rely on digital platforms. It said its data centres provide the physical infrastructure that supports these initiatives and that it aims to work with global and domestic technology providers that are active in the Japanese market.

Government backing

Representatives of Japan’s government have signalled support for large-scale private investment in digital infrastructure, including data centres that serve AI and cloud services. A senior member of the government recently attended the opening of AirTrunk’s expanded Tokyo headquarters.

Mr Yamada Kenji is a member of the House of Representatives and serves as State Minister of Economy, Trade and Industry.

“Japan is committed to building a robust digital foundation that accelerates innovation and strengthens our global competitiveness. Continued investments like AirTrunk’s new Osaka hyperscale data centre are vital to supporting our national priorities, including Society 5.0 and the responsible adoption of AI. By partnering with leading technology companies, we are ensuring that Japan remains at the forefront of sustainable digital infrastructure and economic growth,” said Mr Yamada Kenji.

AirTrunk said work on OSK2 will proceed as it continues to expand its regional platform across Asia Pacific and the Middle East, with further data centre projects under consideration.

AloJapan.com