: NEC and SCSK are Forming a Data Center Joint Venture

Mar 10, 2022 | Posted by Abdul-Rahman Oladimeji

Two Japanese firms are coming together to form a data center joint venture. NEC and IT firm SCSK Corporation revealed that they are partnering up to strengthen their network and data center business involvement. The JW will see the firms create SCSK NEC Data Center Management, ltd. The new company will begin operations in April 2022. In addition, the agreement also sees the firms jointly operate an uncompleted data center in Inzai City. The data center is scheduled to be in operation in April too.

SCSK and NEC will also jointly own and operate data centers. Furthermore, the new company will have around 200 million yen ($1.7m) in initial capital, with SCSK owning 62.5% and NEC owning the rest. SCSK offers information security, cloud computing, system integration, and software services in Japan in Japan. The company’s data center subsidiary, netXDC (different from Australia’s NextDC), operates 10 data centers in Japan with 1 million square feet in space.

NEC also operates two data centers in Japan. The company also revealed in 2018 that it would invest 20 billion yen ($186 million) in developing two facilities to support demand.

netXDC's Chiba 2 facility

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