Why Japan’s GPU Shortage Could Be Solved by KDDI and Sakura Internet’s New Alliance
- Jeffrey Treistman
- Apr 22
- 6 min read

The demand for high-performance computing (HPC) continues to surge across industries, driven by advancements in artificial intelligence (AI), machine learning (ML), and data processing capabilities. As the world shifts towards digital-first solutions, Japan's technology giants have recognized the need to build robust, scalable infrastructure to support these growing demands. In response, KDDI Corporation, Sakura Internet, and Hi-Res have forged a strategic alliance to address Japan's GPU infrastructure gap, ensuring the country remains competitive in the global AI landscape.
This article explores the significance of the partnership, the technology behind it, and its implications for Japan’s tech industry, focusing on GPU deployment, infrastructure development, and AI innovation.
The Growing Need for GPUs in AI and Data Processing
Graphics Processing Units (GPUs) have evolved far beyond their initial design as components for rendering graphics in video games. Today, GPUs are essential in supporting computationally intensive tasks such as deep learning, big data analytics, and AI model training. Their parallel processing capabilities make them indispensable for accelerating algorithms that would otherwise take days or even weeks to compute using traditional CPUs.
Market Growth in GPU Demand
The global GPU market is projected to grow at a CAGR of 30.6% from 2023 to 2030, reaching a value of approximately USD 200 billion by 2030 (source: Global Industry Analysts). This growth is largely driven by the increased adoption of AI and machine learning across sectors such as healthcare, automotive, finance, and retail. In Japan, a country known for its leadership in electronics and technology, the demand for GPUs is surging due to the rapid growth of AI-driven services and solutions.
In Japan, where technological innovation plays a pivotal role in economic growth, the demand for GPU-powered compute resources is on an upward trajectory. The proliferation of AI applications, coupled with the rise of generative AI technologies, has heightened the need for scalable and reliable GPU systems. However, securing enough GPUs to meet demand—particularly for startups and smaller AI developers—has become a significant challenge.
The Partnership: KDDI, Sakura Internet, and Hi-Res
In April 2025, KDDI Corporation, Sakura Internet, and Hi-Res announced their collaboration aimed at addressing this very issue. The three companies signed a Memorandum of Understanding (MoU) to create a shared GPU system that will enable stable and rapid utilization of GPUs across various sectors.
KDDI Corporation, a leading telecommunications company in Japan, brings substantial expertise in network infrastructure and cloud services. With a global footprint in data center management through its subsidiary Telehouse, KDDI is well-positioned to lead this initiative. Its Osaka Sakai Data Center, slated to begin operations in fiscal year 2025, will serve as the hub for this new GPU infrastructure.
Sakura Internet, a major Japanese cloud provider, offers services such as Sakura Cloud and Sakura VPS, focusing on scalable and secure hosting solutions. With its deep experience in data center operations, Sakura Internet will play a critical role in providing the necessary cloud services to support GPU workloads.
Hi-Res, a high-tech firm specializing in AI and cloud infrastructure, adds a layer of expertise in GPU-powered cloud services. The company's goal is to strengthen Japan's AI development infrastructure, positioning the country as a global leader in AI technology.
Strategic Goals of the Partnership
The primary objective of this partnership is to establish a flexible and scalable GPU-sharing system. The companies aim to provide reliable GPU compute resources for a wide range of customers, from startups to established AI development firms. By leveraging their collective resources, the companies hope to create an ecosystem where GPUs can be accessed on-demand, enabling faster innovation and reducing barriers to entry for smaller businesses.
A major component of this initiative is the deployment of the Nvidia GB200 NVL72 system, a cutting-edge GPU platform capable of handling the most complex AI workloads. This system will be housed at the KDDI Osaka Sakai Data Center, which will be integrated with Sakura Internet's Ko-Hyoku cloud service and the GPUSOROBAN cloud service offered by Hi-Res.
GPU Adoption and Utilization: Data Breakdown
Year | Global GPU Market Size (USD) | AI-Specific GPU Usage Growth (%) | Japan’s GPU Infrastructure Investment |
2023 | 70 Billion | 25% | JPY 10 Billion |
2024 | 95 Billion | 30% | JPY 12 Billion |
2025 (Projected) | 130 Billion | 35% | JPY 15 Billion |
2030 (Projected) | 200 Billion | 40% | JPY 20 Billion |
The investment in GPUs in Japan is set to rise significantly, driven by a need for cutting-edge AI compute power. The Osaka Sakai Data Center, in particular, is poised to play a major role in meeting the demands of AI companies and start-ups.
Benefits for Japan's AI Ecosystem
Fostering AI Innovation
AI is increasingly being viewed as a core element of modern digital infrastructure. As KDDI's EVP and representative director Yasuaki Kuwahara pointed out, AI's role in society is growing rapidly, making it essential to provide stable, high-performance GPU resources. By providing reliable access to GPUs, the partnership will enable AI development across a variety of sectors, including healthcare, finance, and autonomous vehicles.
The alliance will help fuel AI innovation by lowering the barriers for startups and smaller firms that may struggle to access the infrastructure necessary for large-scale AI projects. These companies will no longer need to invest in expensive GPU hardware or worry about maintaining high-performance computing environments.
Economic Growth and Technological Competitiveness
Yoshiyuki Shikura, CEO of Hi-Res, highlighted the potential economic impact of this initiative. By improving GPU infrastructure, Japan can enhance its technological competitiveness, positioning itself as a global leader in AI innovation. As AI technologies become increasingly critical to economic growth, having access to the best computing resources will be crucial for Japan to maintain its technological edge.
"The ability to offer affordable, powerful compute resources will put Japan at the forefront of AI research and development, attracting international talent and investment," said Shikura. "This partnership represents a strategic move not only to meet current demand but to prepare for the exponential growth of AI in the years to come."
The establishment of a shared GPU infrastructure also helps Japan diversify its data economy, reducing its reliance on foreign technology providers. As the global race for AI dominance intensifies, the ability to offer affordable, world-class computing power could provide Japan with a strategic advantage in attracting both local and international AI firms.
Supporting Startup Ecosystems
Startups often face significant challenges in scaling AI solutions due to the high costs associated with GPU acquisition and maintenance. By enabling shared access to GPUs, the partnership allows smaller players to participate in the AI revolution. The initiative also fosters collaboration between various stakeholders, including government agencies, research institutions, and tech companies, creating a robust ecosystem for innovation.
Moreover, KDDI's involvement in the development of the Osaka Sakai Data Center ensures that AI developers will have access to state-of-the-art facilities with high reliability and uptime, crucial factors when dealing with mission-critical applications.
Long-Term Implications for Global AI Development
As Japan's GPU infrastructure evolves, it could set the stage for other countries in Asia to follow suit. The global race for AI supremacy is intensifying, and having access to world-class GPU resources is essential for maintaining competitive advantage. By building this infrastructure, Japan not only supports domestic companies but also contributes to global AI development by offering an alternative to the established data centers in the United States and China.
Additionally, the move could encourage further collaborations between Japanese tech companies and global AI players. The success of this initiative could lead to expanded partnerships in the future, positioning Japan as a global leader in AI research and development.
A Strategic Move for Japan's Future
The partnership between KDDI, Sakura Internet, and Hi-Res marks a significant milestone in Japan's efforts to become a global AI powerhouse. By addressing the pressing need for GPU infrastructure, the three companies are laying the foundation for Japan’s AI future, ensuring that domestic developers, startups, and corporations have access to the high-performance computing resources necessary to innovate and compete on the global stage.
As the demand for AI continues to grow, the success of this initiative will not only benefit Japan but could also set a precedent for other countries looking to enhance their AI infrastructure. With strategic investments in GPU resources, Japan is poised to strengthen its position in the global AI race and foster the growth of new, cutting-edge technologies.
Further Reading / External References
In conclusion, the collaborative efforts of KDDI, Sakura Internet, and Hi-Res provide a model for integrating cutting-edge technology with strategic infrastructure investments, contributing to the global evolution of AI and generative AI capabilities. As AI computing power continues to be a critical factor in technological and economic development.
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