February 15, 2018

NEC to expand data centers for cloud customers

The expansion seeks to offer hyper-scale cloud services to U.S based companies by investing USD 186M.

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Japanese IT giant NEC has announced that they are all set to expand their data centers in a bid to attract foreign clients. With this acquisition, NEC will seek to double the existing capacity of their current data center at Kobe and build a new data center by investing USD 186 million.

NEC say that they are experiencing huge demand from their U.S based cloud-native clients for data center services. They also claim that in response to the demand, building a hyper-scale data center supporting cloud services was imperative. In addition to this, they also added that by expanding their data centers, NEC will also target more foreign clients that are looking for cloud-based data center services.

According to NEC, Japan’s geographic location serves as a perfect spot to scale their data centers. They further added that this geographic position will give them a strategic advantage while enticing foreign clients, especially from the West.

Industry analysts reveal that the demand for data centers and cloud-based services in Japan has been at an all-time high. They further added that IT giants like NEC, NTT and FUJITSU have a major role to play in the evolution of cloud as well as data center services in Japan, with sales prediction of close to USD 7.5 billion coming from these three combined.

In closing, NEC added that after doubling the facility at the Kobe data center, the second data center will be built in Nagoya, Japan which will have an investment of approximately USD 74 million.

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