The rise of artificial intelligence and Japan’s drive for digital transformation is forecasted to boost power demand from data centers by 12-fold over the next 10 years. For such a surge to be met with clean energy, Japan needs both massive investment and thorough state planning.

Toward that goal, the Watt-Bit Coordination (WBC) initiative will play a crucial role. Created to promote a strategic approach to infrastructure development, particularly proposing how to integrate the power (Watt) and communication (Bit) facilities, the initiative has gathered a broad body of Japanese and international businesses.

Proposed by TEPCO Power Grid during the “GX2040 Leaders Panel” in 2024, the WBC focuses on an integrated development of power systems and communication infrastructure, recognizing that physical separation between decarbonized power sources and data centers can lead to increased costs and time for grid development.

By leveraging the cost-effectiveness of optical fiber cables – at 1% the cost of power transmission lines – the strategy involves situating data centers near clean power sources and extending cables to transmit information, thereby overcoming physical distance constraints.