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History of IIJ's data center technology development

1992 Birth of IIJ

IIJ was established in 1992 as Japan's first ISP (Internet service provider).

To set up a Japan-wide Internet backbone, the company leased data centers across the country and built NOCs (network operations centers).

Data centers with NOCs can connect directly to the IIJ backbone, Japan's largest, providing a highly accommodating environment for network services requiring broadband Internet connections. In 1995, the company launched housing and hosting services for such websites.

1998 Launch of wide-area LAN services

Moving into the latter half of the 1990s, IIJ gained recognition for the high quality of its system building and operations, and it gradually began taking on large-scale systems projects. In 1998, we established Crosswave Communications Inc. (CWC, sold to NTT Communications in December 2003) to provide WAN lines for businesses, and began providing wide-area LAN services (Layer 2 WAN services).

Wide-area LAN services were revolutionary because they connect users directly to WANs via the same Ethernet technologies used for the LANs in corporate offices, and billing is not dependent on communication line distance. At that time, IIJ's service was an astounding offer for companies whose long-distance communication costs were high, because WANs were built using high-speed digital leased lines.

As CWC's sales expanded rapidly, the company was in need of stations across Japan to expand its own network. At the time, we used large storage containers to build these stations without incurring heavy costs. We set up 24/7 network equipment in container-based stations installed outdoors. Through this experience, we learned that containers could be used in the installation of communication equipment.
And even after CWC left the IIJ Group in 2003, some of our engineers still wondered whether we could make use of this setup for data centers, and thus IIJ's data center development team continued to pursue research on this topic.

Late 1990s Cloud services in their infancy and NHN

Another big shift happened in the late 90s. Once server-side Java and ASP became available and the infrastructure for connecting to databases and processing payments online was in place, the construction of e-commerce sites using dynamic site features became commonplace.

The system architecture of e-commerce sites is similar across different customers' sites. Arranging the required equipment lineup and organizing it into components ahead of time therefore makes it possible to have the right combination of components ready to go when a customer orders a site, resulting in efficiency gains. It was with this in mind that we created the resource-on-demand service IBPS, the predecessor to our current IIJ GIO cloud service. With this setup, customers can use the resources they need when they need them, and cancel resources when they are no longer required. The customer need not bear the risk of asset ownership. IBPS was an example of what we now call IaaS.

IIJ also operates and manages large-scale service facilities providing the infrastructure for numerous services.

To reduce the cost of managing and operating these facilities, IIJ continued to pursue standardization and automation and created a next-generation service infrastructure technology it calls NHN (Next Host Network).(Japanese text only) Thanks to this technology, IIJ gained expertise in the low-cost operation of large server environments.

Over the course of more than a decade leading up to the launch of the IIJ GIO cloud service in 2009, IIJ overcame a range of challenges in the process of evolving its IaaS business and service infrastructure. Based on this experience, the company also came to understand that reducing the cost of data center facilities and power usage would be the most effective means of making IIJ GIO even more cost competitive.

2000s From water cooling to outside-air cooling

The data center development team's research on containers continued.

As IIJ's services expanded, it became clear that we would be unable to keep up with the speed of large-scale capital investment if we relied on urban data centers alone.

Increases in IT equipment power consumption and the resulting increases in air-conditioning system power consumption were also predicted to become a society-wide problem.

We therefore continued our research on containers with water-cooling systems, which were at the time said to be efficient, but we discovered that the capital investment and operating costs would not come down as much as we had expected. Meanwhile, outside-air cooling was already known to be an efficient cooling method, but there were no cases of it being used on a data center in Japan as the main year-round cooling mode due to structural problems associated with buildings and other factors. A study in the US, however, revealed that some data centers had begun to use outside air as their main cooling medium, and this prompted a major change of tack toward outside-air cooling at IIJ in pursuit of significant reductions in power consumption.

Yet we had nothing to refer to or guide us, so our research began with containers of a completely different structure to what we use now.

Initial outside-air cooling container concept (excerpt from internal planning documents)

2010 Next-generation data center demonstration testing

Our research into outside-air cooling methods continued. In February 2010, we installed a container in the Chubu region and began conducting tests of outside-air cooling methods with nine 46U racks fully loaded with running servers. This was an experiment to see if a load like this could be sufficiently cooled with outside air.

When it gets too cold in winter, condensation and static electricity occur, so we mixed exhaust heat with the outside air, and in summer, we ran the compressor during the daytime, all the while collecting basic data from the unit to facilitate optimal air-conditioning and humidity control.

As a result, we achieved a fairly astonishing pPUE of 1.04, verifying that the system would be quite effective for commercial use.

This led to the establishment of IIJ in-house technologies such as outdoor-air cooling systems that consider the climate of Japan and containerized IT modules that are able to make the best use of systems.

Press release:

  • IIJ conducts demonstration testing aimed at building a next-generation modularized eco-friendly data center (November 26, 2009) (in Japanese only)

2011 Matsue Data Center Park opens

These efforts culminated in the August 2010 announcement of plans to build a containerized data center and then the April 2011 opening of Matsue Data Center Park.

Press releases:

  • IIJ commences construction of Matsue Data Center Park, Japan's first commercial data center composed of outside-air cooled containerized units (August 26, 2010) (in Japanese only)
  • IIJ opens Matsue Data Center Park, begin offering IIJ GIO Private HaaS (April 26, 2011) (in Japanese only)

The advantages of containerized data centers start with the overwhelmingly low-cost construction. Yet the units are also sturdy because they are one-storey, hexagonal metal structures. In addition, outside-air cooling means that power consumption is drastically lower than that of urban data centers with conventional air conditioning. Our original rationale was to reduce electricity bills, but it turned out to be a big advantage when Japan as a whole was working to reduce power usage in the wake of the 2011 Great East Japan Earthquake.

Another advantage is the highly efficient use of equipment space. The system can supply 90kVA, enough to house and run over 300 servers in a single container while also cooling the heat load. At that time, it was common for urban data centers to only provide 4-6 kVA per rack. The issue with this was that 42U racks would be underutilized because they could only be roughly half filled. The cost of providing cloud services like IIJ's would be high in this case. Efficient use of equipment mounting space represents a huge advantage for service providers.

Another big advantage is the high utilization efficiency, because you can add containers as and when you need them. Installation-wise, the rack mounting and cabling is done at our server kitting center, and we make the units the maximum size transportable by truck under Japanese road traffic law. This practice significantly compresses the lead time when containers need to be added. In other words, the time between making a capital outlay and starting to recoup the investment is extremely short.

Containerized data centers are excluded from the classification of buildings on the premise that human beings do not normally enter the space. This is why IIJ seeks to further reduce costs by, basically, using containerized data centers to house sets of equipment in cases where physical failures and service provision can be conceptually separated from each other, such as with IIJ GIO virtual machine services. Another reason is that with virtual servers, it is easy to switch services at another location in the event of an accident or disaster. Meanwhile, we believe it is more advantageous to install customer-supplied equipment that requires physical maintenance in building-type data centers given the need for maintainability and networking flexibility. IIJ aims to combine the advantages of containerized data centers with the features of building-type data centers to provide the systems customers desire at low cost.

2013 All-outside-air containerized data center demonstration testing

In April 2013, we started demonstration testing of co-IZmo, all-outside-air cooled containerized data centers integrating IT and air-conditioning equipment into a single module, with the aim of reducing the size and energy consumption of containerized data centers.

Press release:

2013
November: Development of indirect outside-air cooled containerized data center

To serve the diverse needs of our customers even better, we developed a new containerized data center module called co-IZmo/I, imbued with the insights we had gained through demonstration testing ongoing since 2013 on our IZmo outside-air cooled containerized data center modules as well as our co-IZmo/D modules designed for even greater energy savings by virtue of year-round outside-air cooling.
IIJ’s co-IZmo/I integrates IT and air-conditioning equipment into a single module housed in a readily transportable (ISO standard) 20-foot container. It is possible to connect multiple containers, which offers a flexibility that makes this solution suitable for the construction of data centers up to large-scale data centers.

Press release:

2013 November: Expansion of Matsue Data Center Park

Previously, we were using Matsue Data Center Park as our IIJ GIO Service facility. IIJ GIO Service is our own cloud service. In April 2013 we began expanding the facility to double its size. In conjunction with this, we also built a housing space for customers' own IT equipment.

Press release:

2014
Selected for feasibility study on installation of containerized data center in Laos

Japan's Ministry of Economy, Trade and Industry (METI) selected IIJ to implement a feasibility study on containerized data centers based on the Joint Crediting Mechanism (JCM) project in the Lao People's Democratic Republic (Laos), as part of METI's publicly tendered FY2014 Global Warming Mitigation Technology Promotion Project*1.

Laos was upgrading its domestic IT infrastructure in the run up to the 2015 establishment of the ASEAN Economic Community. The country planned to build environmentally conscious, nationally run data centers as part of this effort. IIJ investigated and discussed the feasibility of reducing greenhouse gas emissions in Laos using its technologies for building high-efficiency containerized data centers.

Press release:

*1. Global Warming Mitigation Technology Promotion Project

The Japanese government is actively seeking to transfer Japan's world-class decarbonization technologies and products to developing economies and engaging in a Joint Credit Mechanism (JCM) with developing economies in pursuit of global-level solutions to global warming. This project will study the feasibility of the JCM and Japan's decarbonization technologies and products by offering policy proposals to partner countries in which there are prospects for building systems and institutions and by proposing business schemes for the adoption of decarbonization technologies and products.

2015 Teardown assessment of containerized data center

We did a teardown of a demonstration testing container, which had been installed five years ago, to perform diagnostics on the internal mechanisms of the container that were not visible from the outside. This provided us with information about how containers deteriorate after long-term exposure to the elements.

2015 Power software proof-of-concept

To increase electricity savings, we evaluated power-prediction and peak-shaving control software.

2016
co-IZmo/I V2 (conjoined containerized data center using multiple energy sources)

We built and evaluated a containerized data center test unit that uses new air-conditioning control, solar power, fuel cells, and a DC UPS. (consigned demonstration project conducted by the New Energy and Industrial Technology Development Organization (NEDO)).

2016 co-IZmo/I delivered to Laos

Adopted for a bilateral JCM demonstration project in Laos based on the advanced low-carbon technologies built into co-IZmo/I as a result of the consigned project in 2014.

2017 Immersion cooling system proof-of-concept

We conducted a demonstration to explore the possibilities of a high-performance immersion cooling system. We assessed the system’s installability and operability, and compared it to conventional air-conditioning systems.

We also studied other possible use cases, including the cooling of GPU-equipped servers for AI and HPC (high-performance computing).

2018
Demonstration testing of co-IZmo/Z (20-foot ISO container-housed data center)

We built and tested a low-cost version of our containerized data center that uses a refrigerated air-conditioning system.

2019 Shiroi Data Center Campus opened

We opened Shiroi Data Center Campus in May 2019 as a system module-type data center using AI control, robot and other new technologies while continuing to use outdoor-air cooling technologies.

Press release:

2019 Lithium-ion batteries introduced at Shiroi Data Center Campus

We introduced lithium-ion batteries with energy management functions at the Shiroi Data Center Campus. They help us implement peak shaving and shifting procedures for the power consumed by air-conditioning systems.

Press release:

2020 Shiroi Wireless Campus open

We have established sandboxed and lab environments for a range of wireless systems, including local 5G, within Shiroi Data Center.

Press release:

2021 Demonstration started for edge computing environments at Shiroi Data Center Campus

We installed a micro data center on the premises of Shiroi Data Center Campus and started a demonstration to verify technologies for practical applications as edge computing infrastructure.

Press release:

2022 Participation in a virtual power plant (VPP) project

We participated in a virtual power plant (VPP) project utilizing the lithium-ion batteries at Shiroi Data Center Campus. We aim to reduce the cost of operating data centers by being compensated by electricity aggregators for fulfilling requests to limit power consumption using surplus electricity stored in batteries and on-site solar power generation systems in demand response (DR) schemes which are positioned as an electricity demand control measure that VPPs can implement.

Press release:

2023 Second building starts operating at Shiroi Data Center Campus

We constructed a second building to meet the diversifying colocation needs of companies and SI operators operating private cloud systems, cloud vendors and content providers that are installing AI infrastructure, etc., and data center operators requiring high energy-efficiency resale spaces while also expanding the equipment storage space for in-house services that are seeing an uptick in demand. The building began operating in July 2023.

Press release:

2023 Joint research project on ultra-high-efficiency AI computing infrastructure

IIJ, in collaboration with Preferred Networks, Inc. (PFN) and Japan Advanced Institute of Science and Technology (JAIST), has launched a joint research and development initiative on ultra-high-efficiency AI computing infrastructure This initiative was jointly proposed and selected under Ministry of Economy, Trade and Industry (METI) and New Energy and Industrial Technology Development Organization (NEDO) program, “Research and Development Project of the Enhanced Infrastructures for Post-5G Information and Communication Systems/Development of post-5G information and communication systems (Commission).”
AI technologies, including generative AI, are increasingly being applied across various fields and are expected to evolve further as foundational infrastructure supporting future society and industry. The development of such AI technologies requires enormous computational power. To lead the world in developing more advanced and large-scale AI foundation models, it is essential to continuously and stably expand computing capacity to meet exponentially growing computational demands.
However, the proportional increase in power consumption associated with enhanced computing capacity poses a major challenge. For the sustainable advancement of AI technologies, it is critical to significantly improve the performance-per-watt of AI accelerators (computing devices) and achieve higher density of these devices within data center infrastructures.
In this joint development project, PFN, which has a proven track record in developing AI accelerators and large-scale language models, will conduct research and development on ultra-high-efficiency AI accelerator systems and their control technologies. IIJ, leveraging its expertise in building and operating large-scale data centers and cloud services, will focus on developing high-density data center infrastructure technologies for large-scale commercial service deployment. Furthermore, PFN, IIJ, and JAIST will jointly conduct research on efficient operational technologies in multi-tenant environments for commercial AI computing platforms, as well as optimization of actual AI workloads.

Press release:

2025 A system module building starts operating at Matsue Data Center Park

We constructed a system module building that began operating in June 2025. The building, which has greater storage efficiency than containerized modules, houses equipment for the in-house services that are seeing an increase in demand in association with businesses' digital transformations and the increase in the use of AI.
In addition, IIJ is participating in the Decarbonization Leading Areas project advanced by the Ministry of the Environment through a joint proposal IIJ submitted together with Matsue City in Shimane Prefecture. IIJ will use the storage batteries installed in Matsue Data Center Park as a part of the infrastructure for supplying electricity to communities in the event of a disaster.

Press release:


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