Sakura Internet may increase capital spending nearly sevenfold to meet AI data center demand in Japan

Sakura Internet's founder and CEO Kunihiro Tanaka said the company may allocate ¥20 billion to ¥30 billion ($125 million to $190 million) in capital spending this fiscal year, compared with its official capital expenditure plan of ¥4.4 billion announced last month.

AI server usage rates at the company are 80% to 90%, and Sakura Internet is considering a further ¥6.5 billion in capital expenditures and additional spending to procure AI accelerators.

Tanaka cited sharply increasing orders as the reason for needing to expand capacity significantly, stating "We need to expand capacity significantly because the number of orders are increasing sharply."