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GMI Cloud, one of the fastest-growing GPU-as-a-Service neocloud providers, today announced its launch of an AI Factory for large-scale physical AI purposes in Kagoshima, Japan, with Wistron, representing one of the largest sovereign AI infrastructure commitments in Asia. This $12 billion project establishes GMI Cloud as the leading partner for nations seeking to build independent, sustainable AI Factories. The development in which GMI's AI factory is intended to be located is initiated by Kai Shin Digital Infrastructure, a joint venture structured by CDIB Capital and Shinetsu Science Industry, in close collaboration with the Kagoshima Prefectural Government and Satsumasendai City. Reinforced by strong public-private partnership support, the development will start in late 2026 and can ramp up to 1 gigawatt of power capability.
The global shift towards sovereign AI is driven by a consensus that AI computing power is a fundamental pillar of national security and economic competitiveness in the foreseeable future. Governments are moving decisively to mitigate the strategic risks of depending on foreign-controlled platforms in addition to data jurisdiction conflicts and supply chain vulnerabilities. GMI Cloud's expertise and proven experience in architecting, deploying, and scaling sovereign facilities positions the company as the partner of choice for countries seeking technological independence.
"Japan has built some of the world's most sophisticated industrial and manufacturing systems," said Alex Yeh, CEO of GMI Cloud. "The next frontier is ensuring those systems are powered by AI that Japan owns, controls, and can trust. That is exactly what we are here to build."
The Kagoshima hub will be among the first AI Factories built with next-generation AI hardware and infrastructure, delivering unprecedented efficiency for both training and inference. As Japan's first domestically built AI Factory designed to support Physical AI, systems that control robotics, autonomous vehicles, manufacturing, and industrial infrastructure, it establishes the sovereign computing foundation required for nations to maintain full control over the intelligent systems underpinning their manufacturing, logistics, and critical infrastructure.
GMI Cloud will be building this AI Factory to be green and sustainable as part of its commitment to addressing environmental concerns and purposes. The facility will serve as a global reference architecture for building environment-friendly sovereign AI infrastructure at scale.
"Building a sovereign Al Factory at this scale requires a partner with a strong track record. GMI Cloud's demonstrated experience in deploying the most advanced hardware into production-grade Al infrastructure is exactly what this project demands. Wistron is designated to support that vision with the manufacturing excellence it requires," said David Shen, CTO, Wistron Corporation.
"GMI Cloud is setting the standard for sovereign AI infrastructure through its Kagoshima AI Factory, designed to deliver national-scale performance and operational control. VAST's AI Operating System provides the unified data foundation that enables the Factory's persistent memory, governance, and data orchestration at scale, enabling sovereign Physical AI systems to operate with performance and trust engineered into the architecture," said Jeff Denworth, Co-Founder at VAST Data.
