NTT Data Reports $500M Data Center Investment in Q1 Results

Japanese IT services provider NTT Data reported $634 million in data center investment during Q1 FY2026, alongside $733 million in data center sales. Overall, the NTT Group company posted $8 billion in net sales, up 15.8 percent year over year, while net new orders rose 29.7 percent to $9.15 billion. Operating profit increased 9 percent to $398 million. Data center sales generated a 33 percent operating margin during the April–June period.

“Japan is in the midst of the most consequential economic transition in a generation,” said Kazuhiko Nakayama, recently appointed president and CEO of NTT Data Group. “The corporate landscape is being reshaped by consolidation, renewed investment, and a fundamental shift in pricing models. For a company of our scale, this shift changes the calculus on everything from capital allocation to how we price our services and where we choose to invest for growth.”

NTT Data CEO highlighted US policy uncertainty, European regulations, and rising AI adoption as key market challenges. However, he said demand remains strong as customers modernize operations and accelerate AI adoption. The company remains confident in its long-term growth strategy and AI services. NTT Data currently operates more than 2GW across 160 data centers in 20 global markets.