Blackstone (NYSE: BX) is preparing to commit US$30 billion to AI data centres in Japan over the next three to five years, according to Nikkei, which cited the firm’s president and COO, Jonathan Gray.

Gray told the Japanese newspaper that the greater risk lies in underbuilding computing capacity rather than overinvesting due to concerns about an AI bubble.

Blackstone has already developed more than 500MW of data centre capacity and is in discussions for projects totalling more than 1GW.

The alternative asset manager is also looking to increase its private equity exposure in Japan.

The comments come shortly after Blackstone closed its Blackstone Capital Partners Asia III fund at US$13.1 billion, above its US$10 billion target. The fund is the firm’s largest private equity vehicle raised for Asia.

Gray said Japan could become as important as India for the fund’s investment strategy, according to Nikkei.

Japan is the second-largest data centre market among developed economies after the US, according to JLL. The country’s data centre market generated US$23.4 billion in revenue in 2024 and is forecast to grow at an average annual rate of 6.7% between 2025 and 2030, reaching US$33.4 billion by the end of the decade.

Demand is being driven by rising domestic internet traffic, growing use of AI, and Japan’s role as a connectivity hub between North America and the Asia Pacific. The market is also supported by political stability, reliable power supply, strong fibre infrastructure, and a deep pool of technical talent.

Several regional and global operators are also expanding in Japan. 

Goodman, the Australian industrial property and digital infrastructure group, was recently selected as the lead development partner for a proposed data centre campus in Kanagawa Prefecture. Digital Realty opens third Japan data centre, taking campus near 100MW.

Japan, alongside South Korea, is also seen as an early contender for Nebius’ APAC AI Factory expansion, as the company turns to Asia-Pacific as its next growth market.

The Japan plan would deepen Blackstone’s data centre exposure in the region. The firm closed its A$24 billion acquisition of AirTrunk in 2024 alongside CPP Investments, gaining one of the region’s largest hyperscale platforms.

It has also backed India’s Lumina CloudInfra, which had about 600MW of planned capacity before being acquired by AirTrunk in April 2026, and invested US$250 million in convertible notes issued by China’s VNET in 2022.