Google will open a data center in Japan next year. This is the first time Google has built a new data center in Asia since 2013. Google CEO, Sundar Pichai recently announced a visit to Japan on his blog. He officially revealed that the company will open its first data center in Chiba Prefecture, Japan, in 2023. Google previously said it would invest $730 million by next year to expand its Japanese infrastructure. The data center is an integral part of this plan.
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Japan will become the third Asian region to have Google data centers after Taiwan and Singapore. Google’s main services in South Korea, such as the Play Store, YouTube and Gmail, are delivered through foreign servers. It uses leased LG U+ data centers to provide cloud services. Google has been criticized for not building data centers in South Korea to avoid huge taxes from the South Korean government. According to estimates, Google generates trillions of won (over $700 million) in sales in South Korea. However, the company pays less than 10 billion won ($7 million) in corporate tax because it has no fixed business premises in South Korea, such as data centers.
Google to invest in Japan
A few days ago, Google CEO Sundar Pichai said in an interview with Nikkei that Google plans to invest a total of 100 billion yen (about $686 million) in Japan in the four years to 2024. Some of this fund will go to the first data center and submarine cable in Japan. He claims that as the economy slows, the company will accelerate operational efficiencies while continuing to invest in its Asia Pacific business.
The company released a new generation of flagship mobile phone, the Pixel 7 series and its first smartwatch, Pixel Watch last week. The Pixel 7 starts at 82,500 yen (about $566) in Japan, while the Pixel 7 Pro starts at 124,300 yen (about $853). The Pixel Watch sells for about 39800 yen / 47800 yen (about $273 / $328).