TOKYO — Capital spending by major Japanese companies is set to hit an all-time high this fiscal year, fueled by significant investments in data centers, chip manufacturing, power grids, and other sectors linked to artificial intelligence (AI).

Leading this surge are NTT and Toyota, with Nippon Steel and Honda also making substantial expenditures to modernize their production facilities. These investments reflect a broader trend among Japan's top firms to enhance technological capabilities and infrastructure in response to growing AI demands.

An NTT Data Group data center in Japan exemplifies the scale of these developments, underscoring the critical role of data infrastructure in the country's economic strategy.

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