HPE and KDDI to open AI data center with NVIDIA tech in Japan

OSAKA - HPE (NYSE:HPE), a prominent player in the Technology Hardware industry with a market capitalization of $24.17 billion and strong financial health according to InvestingPro analysis, and KDDI Corporation announced plans to open the Osaka Sakai Data Center by early 2026, featuring NVIDIA Blackwell-powered AI infrastructure to support startups and enterprises developing AI applications and training large language models.

The facility will house a rack-scale system featuring the NVIDIA GB200 NVL72 platform built by HPE, based on NVIDIA’s Blackwell architecture. The data center will utilize hybrid cooling technology, combining air cooling and direct liquid cooling, to reduce environmental impact. With revenue growth of 11.79% in the last twelve months, HPE continues to demonstrate strong operational execution.

KDDI plans to offer cloud-based AI computing services through its WAKONX business platform, targeting organizations developing generative AI models or requiring low-latency inferencing capabilities. The services will be available to businesses in Japan and globally.

The NVIDIA GB200 NVL72 system built by HPE includes NVIDIA accelerated computing, networking, and software components designed for energy-efficient AI clusters. The system will feature NVIDIA Quantum-2 InfiniBand, NVIDIA Spectrum-X Ethernet, and NVIDIA BlueField-3 DPUs for high-performance network connectivity.

"Our collaboration with KDDI marks a pivotal milestone in supporting Japan’s AI innovation," said Antonio Neri, president and CEO of HPE.

Hiromichi Matsuda, President and CEO of KDDI, stated, "HPE’s deep expertise in supercomputing and advanced cooling technologies will be instrumental in driving the evolution of next-generation AI data centers."

The announcement was made at HPE Discover 2025 in Las Vegas, according to the press release statement.

In other recent news, Hewlett Packard Enterprise (HPE) reported a significant 7% year-over-year increase in server revenue, reaching $4.1 billion, despite a 5% quarter-over-quarter decline. The company has begun shipping its Gen12 servers and expressed confidence in their market uptake. HPE also secured $1.1 billion in net new orders in the AI server segment, with notable growth in enterprise and sovereign markets. Additionally, HPE raised its earnings per share guidance to a range of $1.78 to $1.90 for fiscal year 2025. In other developments, HPE announced an expansion of its ProLiant server lineup with new models featuring AMD EPYC processors, enhancing memory capacity and security features. The company also introduced HPE Partner Ready Vantage, a unified framework consolidating its partner programs. Furthermore, HPE is partnering with Nvidia and the Leibniz Supercomputing Centre to build a new supercomputer, expected to be available to scientists by 2027. Lastly, Loop Capital Markets raised its price target for HPE to $18 while maintaining a Hold rating, following the company’s strong performance in server revenue.

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