Announcement on Commencing Preparations for Establishing a U.S. Subsidiary

Starseeds Co., Ltd. (Headquarters: Minato-ku, Tokyo; President and CEO: Masanori Suzuki; TSE Standard Market: Code 3083; hereinafter "the Company") announces that it has commenced preparations for establishing a subsidiary in the United States to fully expand its AI infrastructure business in the U.S., as detailed below.

1. Purpose and Background of Commencing Preparations

The Company's mission is to enable Japan's manufacturing industry to reclaim the world's most advanced technologies.

In recent years, the global data center market has continued to grow rapidly, driven by the widespread adoption of generative AI. The market is projected to reach approximately USD 452.5 billion in 2025, an increase of about 8.8% compared to the previous year, and is expected to grow further to approximately USD 624.1 billion by 2029 (Source: JETRO "Regional and Analytical Report"). In particular, the U.S. is witnessing a surge in demand for AI infrastructure, prompting many global companies to accelerate large-scale investments and expansion into data center operations, with strong growth expected to continue in the coming years.

In this market environment, and considering rising geopolitical risks and economic security requirements, the Company aims to strengthen its supply chain resilience by reducing dependency on specific regions and integrating liquid cooling and energy storage technologies as part of its growth strategy. The Company's goal is to lay the foundation for supporting the U.S. AI revolution with Japanese-quality technology. Specifically, the Company is advancing the deployment of a Made-in-Japan hub focused on manufacturing and shipping cutting-edge server products for AI data centers. In addition to these server products, the Company also possesses extensive expertise in containerized liquid cooling technology.

To realize this vision, the Company plans to export AI data center server products manufactured in Japan to the U.S. and deploy and operate them in data centers that are scheduled to be built locally in the future. By integrating its proprietary containerized liquid cooling infrastructure—where the Company holds deep expertise—with these server products, the Company aims to establish a strong competitive position in the U.S. market.

The U.S. entity currently being prepared for establishment is envisioned not merely as a local operational base, but as a strategic foothold (bridgehead) to drive data center business through partnerships, including potential joint ventures (JVs) with prominent local companies.

Moreover, both federal and state governments in the U.S. are actively offering policy support to attract data center investments. Establishing a local presence is therefore considered highly effective in fully leveraging these favorable business conditions. Taking all these factors into account, the Company has decided to commence preparations for establishing its U.S. subsidiary, while also advancing efforts to monitor local technological trends and secure top-tier talent.

2. Overview of the Planned Subsidiary (Current Projections)

Name: To be determined (provisional name: Starseeds US, Inc.)

Location: United States (details under consideration)

Planned Representative: Chief Executive Officer (CEO) Masanori Suzuki

Business Activities: Establishing and promoting data center operations through joint ventures and collaborations with U.S. companies, deploying cutting-edge server products and liquid cooling infrastructure for AI data centers, and securing advanced technologies and talent in the local market

Capital: To be determined

Planned Establishment Date: To be determined

Ownership Ratio: Starseeds Co., Ltd. 100% (planned)

3. Future Developments

The Company is currently conducting detailed reviews of relevant local laws, regulations, and incorporation procedures, and advancing specific preparations for establishing the subsidiary. Once finalized, details regarding the name, location, capital, establishment timing, and other specifics will be promptly announced via the Company's website and other channels.

[Important Notes Regarding Forward-Looking Statements]

The plans regarding the establishment of the subsidiary, the concept of joint ventures and collaborations with U.S. companies, and descriptions related to the construction and operation of data centers contained in this announcement are based on information available to the Company and the Company's current judgment as of the date of this announcement and do not represent confirmed facts. Actual business developments may differ from what is described herein due to various factors, including future discussions with potential partner companies, changes in local laws, regulations, and permitting requirements, economic conditions surrounding capital investment, and other factors. These plans themselves may also be modified or canceled.

Contact Information

Starseeds Co., Ltd.

Management Department, Jiro Takeya

TEL: 03-6721-5891

E-mail: kanribu@starseeds.co.jp

URL: https://starseeds.co.jp/