PowerX and IIJ Begin Joint Exploration of Battery Storage and Containerized Data Center Solutions

TOKYO, JAPAN — PowerX, Inc. (Head Office: Tamano City, Okayama Prefecture; Director, President and CEO: Masahiro Ito; TSE Growth Market Code: 485A; hereinafter "PowerX") and Internet Initiative Japan Inc. (Head Office: Chiyoda City, Tokyo; Representative Director, President and Co-CEO & COO: Yasuhiko Taniwaki; TSE Prime Market Code: 3774; hereinafter "IIJ") have signed a memorandum of understanding (MOU) on collaboration leveraging battery energy storage systems (BESS) and containerized data centers.

In recent years, the surge in AI demand has driven a rapid increase in demand for data centers capable of housing compute-intensive resources such as GPU servers, which require large amounts of electricity. This has created a growing challenge around optimizing where to secure the necessary power and where and how to execute and manage AI workloads. In response, there is increasing interest not only in centralized processing at hyperscale data centers but also in distributed processing through container and micro data centers, as well as in achieving stable power supply and decarbonization through integration with local energy sources.

Against this backdrop, PowerX and IIJ aim to build and expand power and digital infrastructure that supports an AI-driven society by combining BESS with containerized data centers. To achieve this, the two companies will begin exploring collaboration across several areas, including the joint development of container data centers that integrate the flexibility of BESS with computing platforms, the development of use cases for digital infrastructure utilizing distributed networks, and the creation of power utilization frameworks leveraging BESS.

Among the potential applications under consideration are storing electricity at lower cost and supplying it to server equipment within the containers, as well as selling surplus energy stored in the BESS during periods of high demand, taking into account fluctuations in electricity market prices driven by the expansion of renewable energy and shifts in the power supply-demand balance in Japan. Through these initiatives, the companies seek to address the complex, interconnected challenges of securing power, construction capacity, and computing resources, thereby advancing "Watt-Bit Integration*."

* Watt-Bit Integration: A concept that optimizes the convergence of power (Watt) and communications technology (Bit), enabling digital infrastructure that addresses societal challenges such as AI, decarbonization, and regional distribution.

PowerX develops and manufactures large-scale BESS in Japan. Leveraging its expertise in container assembling, direct current power control, and thermal management technologies, the company has commercialized the "Mega Power DC," a containerized data center product. Following market validation, PowerX aims to begin mass production of the product.

IIJ has been operating its own container-based data center in Matsue City, Shimane Prefecture since 2011. Drawing on its extensive experience in data center development and operations, IIJ will contribute to identifying optimal technical requirements and supporting the development of container data centers.

Through this collaboration, the two companies aim to drive the efficient expansion of power and digital infrastructure, improve Japan's energy self-sufficiency, and contribute to the realization of a decarbonized society and the development of local communities.

For more information on the product, visit: https://power-x.jp/datacenter .

About PowerX

Company Name:PowerX, Inc.
Founded:March 22, 2021
Representative:Director, President and CEO: Masahiro Ito
Head Office:6-9-1 Tai, Tamano City, Okayama Prefecture
URL:https://power-x.jp/

About Internet Initiative Japan Inc. (IIJ)

Company Name:Internet Initiative Japan Inc.
Founded:December 3, 1992
Representative:Representative Director, President and Co-CEO & COO: Yasuhiko Taniwaki
Head Office:2-10-2 Fujimi, Chiyoda City, Tokyo
URL:https://www.iij.ad.jp/en/