Korea Investment Holdings, SBI kick off ₩10 trillion Japan data center project, a ‘Korea-Japan Stargate’

【TOKYO—Hyejin Seo】Korea Investment Holdings and Japan’s SBI Group plan to set up a joint fund to invest ¥1.15 trillion (approximately ₩9.752 trillion) in data centers in Japan. The plan is to build facilities with a capacity of 200 megawatts (MW), with investment from major companies in both countries. The large-scale AI infrastructure investment will combine financial firms’ fundraising capabilities with companies’ technology and equipment, and the groups plan to draw up a blueprint for the project by year-end.
On the 1st, business and financial circles in Korea and Japan said Korea Investment Holdings and SBI Group had agreed to set up a joint fund for investment in Japanese data centers and were sounding out companies in both countries about their willingness to invest. The two financial groups will lead the fund’s formation and fundraising, and bring in companies as investors. ▶ See related story on page 3
Companies are interested both in returns on their investments and in opportunities to supply their own products and equipment needed for the data centers. They are exploring ways to broaden their participation to include supplying semiconductors, cooling systems and power equipment, as well as constructing and operating the facilities. The two sides plan to firm up the project by year-end as they gauge companies’ interest in investing.
The plan shares similarities with the Stargate Project, pursued by Japan’s SoftBank Group Corp. and U.S. companies OpenAI and Oracle, in that it aims to build AI infrastructure by pooling funding and technology from multiple companies. The Stargate Project is a U.S. AI infrastructure initiative in which SoftBank leads fundraising, OpenAI leads operations, and technology companies participate. The joint Korea Investment Holdings-SBI fund is likewise intended to connect financial capital with companies’ business capabilities to invest in Japan’s data center market.
Contacts have also continued among political and business figures in Korea and Japan over cooperation in future industries, including data centers. Seiji Kihara, secretary-general of the LDP’s Japan Growth Strategy Headquarters, reportedly visited South Korea from late August to early September and met Kim Nam-koo, chairman of Korea Investment Holdings, and Lee Jae-yong, chairman of Samsung Electronics Co., Ltd.
The meeting between Kihara and Chairman Kim reportedly covered ways for Korea and Japan to cooperate in future industries, including data centers, hydrogen, blockchain and space. Kihara served as deputy chief cabinet secretary under the Kishida administration and was involved in improving Korea-Japan relations. He currently handles growth strategy-related work in the ruling LDP.
SBI Group Chairman and President Yoshitaka Kitao reportedly visited South Korea in late September and met Chairman Kim. The two sides discussed cooperation, including setting up a joint fund. Alongside efforts to gauge companies’ willingness to invest, consultations between the heads of the two financial groups are also underway.
Several candidate locations for the facilities are under consideration. Kyushu in Japan has been mentioned as one possibility, and project-related parties are understood to have contacted Kyushu Electric Power and held discussions on the matter.
The project is a private-sector joint investment being pursued as the two governments build consensus on expanding cooperation in AI and future industries. At a summit in Andong last May, President Lee Jae Myung and Japanese Prime Minister TAKAICHI Sanae agreed to strengthen AI cooperation based on the two countries’ respective strengths and expand cooperation in supply chains and energy as well.
Korea Investment Holdings is also understood to be pursuing the establishment of an office in Japan to expand its business there and strengthen its local network.
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