The subsidy programme forms part of the government’s GX Strategic Areas initiative, which aims to create new industrial clusters by leveraging decarbonised electricity sources. It supports capital investment in manufacturing facilities and data centres that use 100% decarbonised electricity and contribute to the development of power-generating regions.
The government has allocated JPY40 billion to the programme in its initial FY2026 budget and plans to provide a total of JPY210 billion in support over five years. In the first round, seven manufacturing investment projects and four data centre investment projects were selected.
In the manufacturing investment category, Nippon Shokubai Co., Ltd. was selected for a project involving the construction of a new plant in Arita Town, Saga Prefecture, to manufacture zirconia sheets for solid oxide fuel cells (SOFCs). Demand for SOFCs is expected to increase as power sources for applications including AI data centres. The company has applied for approximately JPY2.8 billion in subsidies.
In the data centre investment category, three of the four selected projects plan to use nuclear power. NIN plans to develop a data centre in Takahama Town using nuclear and hydropower, and has applied for approximately JPY1.9 billion in subsidies.
Computing Resource Development Shimane plans to develop a data centre in Matsue City using nuclear power, while Satsumasendai DC Energy Management Center plans to develop a data centre in Satsumasendai City using nuclear and geothermal power. Each project has applied for JPY25 billion in subsidies.
In September, the government designated the first group of GX Strategic Areas under the initiative. The latest subsidy selections are separate from those regional designations and are intended to support capital investment by individual businesses using decarbonised electricity.
METI plans to launch the second round of applications for the subsidy programme in November.
