Conclusion of Basic Agreement on Examination for Standardization and Shortening of Construction Period for Modular Data Centers Using Systemized Construction

Nippon Steel Engineering Co., Ltd. (President and CEO: Yukito Ishi, Headquarters: Shinagawa-ku, Tokyo; hereinafter "the Company") is pleased to announce that it has concluded a basic agreement with NTT FACILITIES INC. (President and CEO: Susumu Kawaguchi, Headquarters: Minato-ku, Tokyo) regarding an examination for the standardization and shortening of construction periods for modular data centers utilizing systemized construction.

In recent years, with the rapid expansion of demand for data centers driven by the widespread adoption of generative AI and the advancement of ICT services, challenges in data center construction include lengthy design and construction periods due to procedures based on building codes that address Japan's unique seismic risks, compliance with local government ordinances, labor shortages in the construction industry, and specification changes accompanying dramatic improvements in IT server performance.

To address these challenges, we aim to shorten the overall construction period, including application, design, and construction, by modularizing the main components (foundations, spandrel walls, steel frames, exterior walls, roofs, etc.) that make up the data center building, utilizing the Company's systemized construction product "Stan Package®".

By leveraging our steel structure and systemized construction technologies to establish a construction method for data centers that is both short-term and high-quality, we will respond to the growing demand for data centers, contribute to the creation of resilient social and industrial infrastructure, promote work style reform, and realize new possibilities in architectural design.

[Conceptual rendering of a modular data center]

Image provided by: NTT FACILITIES INC.

[Image illustrating the use of systemized construction in modular data centers]