UAE sovereign fund eyes massive ¥2 trillion AI data center bet in Japan

Mubadala Investment, the Abu Dhabi-based sovereign wealth fund, is in negotiations to invest up to ¥1 trillion (roughly $6.5 to $7 billion) in a proposed AI data center in Akita Prefecture, Japan. The total investment across all participants could reach ¥2 trillion, according to Bloomberg. If built, the facility would have a capacity of approximately 500 MW, making it Japan’s largest data center. Why Japan, and why now Japan has been on a quiet but aggressive campaign to become a global hub for AI compute infrastructure. In June 2026, the government released a strategic plan projecting ¥32.7 trillion in combined public and private investment by fiscal year 2035, all aimed at expanding cloud and data center capacity across the country. The government is backing the push with tax incentives and active courtship of foreign capital. Mubadala’s potential involvement represents exactly the kind of deal Tokyo has been chasing. A Japanese corporate consortium is expected to lead construction and operations, with Mubadala and other international and domestic investors providing the capital. The discussions are still at an early stage, and Mubadala has declined to comment publicly. The AI in...