Rising Electricity Demand in Hokkaido Driven by Data Centers and Semiconductor Plants

Hokkaido is anticipated to experience the highest growth rate in electricity consumption across Japan, as it gears up for investments in data centers and semiconductor chip manufacturing facilities. According to a recent report from the Organization for Cross-Regional Coordination of Transmission Operators (OCCTO), the region’s annual power demand is expected to rise by an average of 1.2% through fiscal 2034, in contrast to a 1.1% increase in Tokyo and 0.6% nationwide.

This upward trend suggests a reversal in Japan's previous decline in power demand, highlighting an increased necessity for energy security, even as the population declines. Major investments are being directed towards Hokkaido, with the state-backed company Rapidus set to begin its chip production by 2027 and SoftBank looking to establish data centers in the area.

The growing electricity demand emphasizes the importance of Hokkaido's Tomari nuclear power plant, where all three reactors are currently undergoing a rigorous safety evaluation under the supervision of the national atomic regulatory body, a process that may take several years. Additionally, Hokkaido is seen as a strong candidate for expanding renewable energy initiatives, like offshore wind projects, with ongoing auctions to select competent developers.

By fiscal 2034, Hokkaido's electricity consumption is projected to reach approximately 31 terawatt hours, reflecting a roughly 12% increase from fiscal 2025. Meanwhile, the electricity demand in the Tokyo area is expected to grow to around 288 terawatt hours as businesses also aim to set up data centers close to the capital.