More than half of Japan’s data centers are concentrated in the Tokyo–Yokohama conurbation. By the end of this week, the government will close applications for a program designed to loosen that grip, using public support to seed new data-center hubs across the country.

On February 13th, applications will close for the designation of so-called GX Strategic Areas, a new scheme that will offer subsidies to municipalities seeking to develop clusters of industrial and digital infrastructure. Data centers are one of four priority categories under the program and, according to government strategy, successful hubs are expected to reach at least one gigawatt in scale.

By anchoring large-scale digital infrastructure outside the capital, officials hope to stimulate fresh demand for clean power in regions where land is more abundant and the siting of decarbonized energy may be less contentious than in and around Tokyo. Candidate regions are not required to have existing energy or telecommunications infrastructure. Instead, subsidy decisions will hinge on a municipality’s willingness to commit to the development of clean industrial capacity alongside digital assets.

After a shortlisting step in spring, the final results are expected to deliver a number of GX Strategic Areas this summer. And while the number of such hubs is as yet undetermined, DC location plans of Japanese majors like SoftBank Corp indicate that a broad number of regions all across the country – including Kyushu and Hokkaido, as well as the Kansai area – are likely beneficiaries.

If successful, the government’s plan will accomplish a number of critical industrial tasks simultaneously – build out the digital infrastructure for a 21st century economy and spur the proliferation of green energy infrastructure. For BESS, renewables, and other clean energy generation developers, this presents a chance to align investment with regions likely to enjoy faster progress on grid access, permitting and site development.