Singtel and Hitachi join forces to accelerate AI-driven data centers in Japan

Singtel and Hitachi, Ltd. (TSE: 6501) have entered into a new Memorandum of Understanding (MOU) to collaborate on developing next-generation data centers and GPU Cloud infrastructure in Japan, aiming to accelerate the digital transformation of enterprises through the adoption of artificial intelligence (AI).

This agreement expands on the companies’ existing partnership, combining Singtel’s expertise in data center management and connectivity with Hitachi’s capabilities in comprehensive data center integration, including sustainable power solutions, advanced cooling systems, and state-of-the-art storage infrastructure. The collaboration aims to elevate data center performance and sustainability, providing a robust platform for AI-driven enterprise innovations.

Singtel’s Digital InfraCo unit, which was spun off in 2023 to spearhead digital infrastructure advancements in Asia Pacific, will lead this initiative. The collaboration is set against the backdrop of Japan’s rapidly growing data center market, which is forecasted to reach US$5 billion by 2028, driven by surging demand for AI and cloud services. Singtel’s CEO of Digital InfraCo, Bill Chang, emphasized the strategic importance of this partnership, noting, “Our alliance with Hitachi, a leader in digital systems and services, unlocks new opportunities in Japan’s expanding market. We are committed to helping enterprises innovate and transform their operations through cloud and AI technologies.”

The MOU outlines key areas of collaboration, including the exploration of next-generation data centers across Japan and the broader Asia Pacific region. The initiative will leverage Nxera’s expertise in data center development and operations, coupled with Hitachi’s proficiency in producing data-center-focused equipment, energy-efficient solutions, and advanced IT systems. This collaboration is poised to address the increasing demand for AI and cloud services by establishing smart, environmentally sustainable data centers.

In addition, the partnership will explore the integration of Singtel’s GPU-as-a-Service (GPUaaS) platform with Hitachi’s AI applications. This integration will allow Hitachi to utilize Singtel’s GPUaaS for its internal AI workloads, testing the platform’s potential to enhance machine learning, generative AI, and other digital technologies. The companies may also co-develop enterprise-grade applications that combine Hitachi’s generative AI technologies with Singtel’s GPU cloud and Paragon platform, aiming to reduce development times and operational overhead for AI deployments.

Hitachi’s Executive Vice President, Toshiaki Tokunaga, highlighted the importance of balancing technological innovation with environmental sustainability. He stated, “As AI continues to drive innovation, the environmental impact due to rising electricity demand is a growing concern. Our partnership with Singtel allows us to address these challenges by developing intelligent, sustainable data centers that support continuous innovation while promoting sustainability.”

This collaboration aligns with Hitachi’s Social Innovation business strategy, which focuses on integrating information technology, operational technology, and products to address societal challenges. The expansion of AI-driven data centers offers significant growth opportunities for Hitachi’s various business units, including Hitachi Digital Services and Hitachi Energy.

The partnership between Singtel and Hitachi represents a significant step forward in the AI-driven digital transformation of enterprises across the Asia Pacific region. By combining their respective strengths, the companies aim to create a robust ecosystem that supports the rapid adoption of AI technologies, driving innovation while ensuring sustainability in the data center industry.