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SYLA Solar Signs Basic Agreement with Taiwan’s Kentec, Inc. and SHUNKETSU Inc. to Establish a Joint Venture

SYLA Solar Co., Ltd. (Head Office: Nagoya, Aichi; CEO: Takeshi Fuchiwaki; hereinafter "SYLA Solar"), a subsidiary of SYLA Technologies Co., Ltd. (Head office: Shibuya-ku, Tokyo; CEO: Hiroyuki Sugimoto; NASDAQ "SYT"), has signed a basic agreement with Taiwan-based Kentec, Inc. (“Kentec”) and SHUNKETSU Inc. (“SHUNKETSU”) to explore the establishment of a joint venture. Discussions and considerations will proceed with the aim of finalizing a joint venture agreement. If the parties reach a resolution to formalize the agreement, further details will be announced accordingly.

Background and Purpose of the Agreement to Promote Data Center Solution and Storage Battery Businesses


Background and Purpose of the Agreement to Promote Data Center Solutions and Energy Storage Businesses
Japan’s data center market faces a range of challenges, including rising energy consumption, achieving carbon neutrality, land scarcity, disaster preparedness, and personnel shortage. The high electricity demand of data centers has drawn attention as an environmental issue, emphasizing the urgent need for adoption of renewable energy and efficient cooling technologies. Addressing natural disasters like earthquakes and typhoons, as well as limited urban land availability, remains critical. With the growing demand for data driven by the expansion of 5G and IoT, coupled with the urgent need to modernize aging facilities, the shortage of specialized personnel has become a pressing issue. As decentralized data centers in regional areas gain traction, enhancing communication infrastructure and strengthening security measures are increasingly vital.

Kentec specializes in data center cooling solutions and EMS (Electronic Manufacturing Services) as a leading systems integration company. Its parent company, KENMEC, is an NVIDIA SIP partner leveraging digital twin technologies and AI to drive industrial growth, while achieving global success in the fields of automation and smart logistics. Kentec aims to optimize data center design using Omniverse, while introducing Taiwan-made AI server solutions and storage batteries to the Japanese market.

SHUNKETSU, since its founding in 2006, has established a track record in developing advanced semiconductor and substrate prototypes, as well as developing high-speed image processing technology and electronic platform technology that optimizes power semiconductor operations on substrates. The company provides optimized electronic solutions tailored to clients in sectors such as consumer electronics and automotive and has a track record of adopting cutting edge technologies from Japan, the U.S., and Taiwan. By leveraging its technical expertise, SHUNKETSU contributes to reducing power consumption and enhancing performance.

SYLA Solar has established its unique strength in renewable energy infrastructure development, maintaining an integrated system that extends from acquiring land for solar power projects to their development and operation. The company is also focusing on acquiring land for data centers and advancing grid-scale battery storage projects, aiming to expand the adoption of renewable energy. Additionally, by introducing efficient cooling technologies, such as liquid cooling systems, SYLA Solar strives to ensure a stable energy supply.

In the proposed joint venture, SYLA Solar will be responsible for acquiring land for data centers and grid-scale battery storage in Japan, as well as managing electrical equipment installations. Kentec will handle the design and proposals for data center facilities using digital twin technology, along with the delivery of storage batteries and AI servers. SHUNKETSU will contribute its expertise in the design and manufacturing of electronic technologies, promoting the development of efficient and sustainable infrastructure. By leveraging their respective strengths, the companies aim to accelerate the adoption of renewable energy and reduce environmental impact in Japan’s energy sector and data center construction projects.

Contact Information
SYLA Technologies Company Contact
Takeshi Fuchiwaki
Director, Chief Growth Officer
[email protected]