Sakura Internet, KDDI Corporation, and Hi-Res have signed a Memorandum of Understanding (MoU) to address demand for GPUs in Japan.

The three companies plan to establish a system that "enables stable and rapid mutual use of GPUs" and can "flexibly respond to the rapidly increasing demand."

All three have been certified by Japan's Ministry of Economy, Trade and Industry for their "Supply Security Plan for the Cloud Program for Specified Important Materials" based on the Economic Security Promotion Act, and are already providing customers with access to GPU compute.

The companies will promote the mutual use and customer referral of GPUs through "corporate alliances."

In addition, the trio will establish a system for shared use at KDDI's Osaka Sakai Data Center, which will feature the Nvidia GB200 NVL72 system and will include Sakura Internet's cloud service for generative AI "Ko-Hyoku," and the GPU cloud service "GPUSOROBAN."

The companies aim to support generative AI in Japan by providing compute resources to domestic startups and AI development companies.

Yasuaki Kuwahara, EVP and representative director of KDDI's business operations division, said: "As AI becomes more important as a social infrastructure, it is essential to provide stable GPUs. By collaborating with Sakura Internet and Hi-Res, we will provide optimal GPUs to many customers, start-ups, and AI development companies, contributing to the development and competitiveness of domestic industries."

Yoshiyuki Shikura, CEO of Hi-Res, added: "Through this agreement, we will strengthen the GPU infrastructure that supports AI development and contribute to domestic technological innovation and economic growth. We will work to improve AI development infrastructure with the aim of making Japan the country with the cheapest AI computing power in the world."

KDDI's Osaka Sakai Data Center is currently under development, aiming to start operations in the fiscal year 2025. It is being developed at the site of a former LCD screen manufacturing plant in Osaka. KDDI is the parent company of Telehouse, which operates data centers around the world, including across Asia.

Sakura Internet also operates its own data centers from which it offers services including Sakura Cloud, Sakura Rental Server, and Sakura VPS.

Sakura recently revealed it would be investing further in its Ishikari Data Center to expand the "C Zone and D Zone of Building 3." The company said this was to "ensure buffer capacity for the continuous growth of cloud services and in anticipation of potential large-scale demand in the future." In total, the company plans to invest JPY 5.3bn ($37.15m).

The company previously expanded its Ishikari data center to accommodate tens of thousands of GPUs in November 2024. The campus will, at full build-out, span 50,000 sqm (538,195 sq ft) and be able to host 6,800 racks across five buildings. The first two buildings were completed in 2011, with a third going live in 2016.