Japanese firms PowerX and Internet Initiative Japan (IIJ) have signed a non-binding Memorandum of Understanding (MoU) to explore the development of containerized data centers integrated with battery energy storage systems (BESS).

The companies said the agreement was signed in response to skyrocketing AI-driven demand, which has placed increasing pressure on power availability and siting. As a result, the companies saw an opportunity to deploy modular, containerized data centers to circumvent bottlenecks in locations where energy integration and grid stability are major concerns.

Under the terms of the MoU, PowerX and IIJ will examine joint development of container data centers that combine the flexibility provided through BESS systems with computing platforms. The partnership will also explore distributed digital infrastructure use cases and new power utilization models leveraging battery storage technologies.

According to the partners, potential applications include storing lower-cost electricity for use by containerized server equipment and selling surplus stored energy back to the market during periods of high demand.

The companies said the partnership is intended to support the expansion of distributed power and digital infrastructure in Japan, with a focus on energy efficiency and integration with local energy sources.

PowerX is a large-scale developer of BESS within the Japanese market. It has also commercialized a containerized data center product, dubbed “Mega Power DC,” which the company said draws on its experience in container assembly, direct current power control, and thermal management. The company plans to begin mass production of the modular solution following market validation.

Founded in 1992, IIJ has operated a container-based data center in Matsue City, Shimane Prefecture, since 2011. The company will contribute operational and design expertise to the partnership to help define technical requirements and support the development of new containerized facilities.

The company has also partnered with ZellaDC on containerized data center solutions. In total, the firm operates approximately 17 locations in Japan and five more internationally. In September, the company announced that it was set to supply four micro data centers to Ukraine.