NTT Global Data Centers, a division of Japan’s NTT, is ramping up its capacity to meet the growing demand for digital infrastructure driven by cloud and AI technologies.
The company is set to boost its capacity to around four gigawatts through a series of 34 projects, with several already in progress. CEO Doug Adams anticipates completing the expansion within two years, with plans to reach five gigawatts within the next five years.
The surge in demand for computing power and specialized infrastructure, particularly in AI, is fueling the company’s expansion efforts. NTT Global Data Centers reported sales of approximately $2.4 billion in the fiscal year ending March 2025, marking a 30% increase. Adams foresees annual revenue growth exceeding 20%.
Expansion will primarily focus on established markets in Europe and APAC, with new facilities being developed in Frankfurt, Milan, and Osaka. The company is also exploring opportunities in the Nordic region and parts of South America.
To finance the expansion, NTT Global Data Centers will utilize internal revenues and external sources. Adams revealed that the company has over $3 billion in its balance sheet for funding, potentially partnering with others or seeking investments to support further growth.
The cost of equipping the facilities for AI workloads is significant, with estimates suggesting a total expenditure of $52 billion for infrastructure and $120 billion for equipment. NTT’s pre-tax profits in the last financial year amounted to $10.45 billion, highlighting the substantial investment required for expanding data center capacity.
With operations in over 20 countries, NTT Global Data Centers is poised to significantly expand its business through the capacity increase. The company’s growth prospects hinge on broader economic and technological trends.
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