Geothermal Energy in Japan Can Power AI & Develop Rural Regions

Jun 2, 2025 | Strategy, Technology | 0 comments

Written by Matt Ketchum

Matt Ketchum is CEO of Akiyaz, business advisor at MKUltraman, curator at Kaala Music, and an active guitarist, where he forges unlikely paths between rural real estate, underground sound, and visionary strategy.

Japan’s artificial intelligence ambitions will fail unless the country reforms its power strategy. At Akiyaz, we see this clearly: rural towns overflowing with potential but starved of energy and digital infrastructure. As Paul J. Ashton recently argued, AI doesn’t just require innovation. It requires electricity. Without power, the dream of a thriving Japan AI infrastructure will collapse before it can scale.

The solution is already beneath our feet. The time has come to fully unlock geothermal energy in Japan.

The Grid Is the Problem. Geothermal Is the Answer.

Japan’s power grid is a historical mistake carried into the present. A 50Hz/60Hz split between east and west has created a fractured, inflexible network that limits power distribution across the country. Even as global energy needs grow—particularly from AI data centers—the Japanese energy grid remains outdated and sluggish.

At Akiyaz, our work in rural towns has exposed just how brittle this system is. On paper, Japan has over 300 GW of capacity. In reality, the Japanese energy grid lacks the buffer needed to support future demand. This is a national crisis, and it’s happening while Japan AI infrastructure is being built with no way to reliably power it.

Why Geothermal Energy in Japan Is the Missing Link

Japan holds the third-largest geothermal reserves on Earth. Yet geothermal energy in Japan makes up less than 0.3 percent of the national supply. That’s a stunning waste of resources.

At Akiyaz, we view geothermal energy in Japan not just as a power solution but as a way to reinvigorate regional economies. Towns with long histories of onsen resorts and traditional ryokan are sitting atop vast energy reserves. These sites, often seen as economic burdens, can be transformed into clean energy production hubs and AI-ready communities.

The pairing is logical and powerful. Where onsen culture meets geothermal power, you get both cultural preservation and technological innovation. That is what Akiyaz delivers.

What Akiyaz Is Doing: Infrastructure That Works With the Community

Our mission is simple: to help Japan build an AI-ready future through localized energy and digital development. We do this by working hand-in-hand with local governments and property owners to turn underutilized onsen and ryokan into assets that power the future.
When we talk about building Japan AI infrastructure, we mean laying fiber lines into rural valleys, activating AI processing facilities inside old buildings, and making sure they run on geothermal energy in Japan, not imported fossil fuels.

We have already seen proof that this works. Communities like Tsuchiyu Onsen and Okuhida Onsengo have successfully developed geothermal projects that coexist with tourism and preserve local water quality. This model should be scaled nationwide and fast.

Matt Ketchum of akiyaz in a geothermal powered onsen in Kanagawa prefecture, Japan

Governments Are Not Moving Fast Enough

Let us be blunt. Japan’s national and prefectural governments have had years to resolve these issues. They have not. This is why Akiyaz builds through private-local partnerships rather than waiting on centralized directives. We collaborate when possible, but we do not wait.

In fact, government inertia is a major reason Japan now finds itself behind in AI readiness. The Japanese energy grid has not been meaningfully updated in decades. Permitting processes for geothermal energy in Japan remain absurdly slow. Meanwhile, other nations are racing ahead to power their AI industries.

For a deeper critique, see our full breakdown in the Public-Private Tolerance article, where we explain why waiting for the state is no longer viable.

Silence is Not Neutral

The reluctance to speak about Japan’s hoarding problem is not neutral. It is harmful. Every untouched home bursting with forgotten detritus, every room reeking of rot and neglect, is a space that could be renewed, revitalized, or repurposed for community benefit. But cultural silence wrapped in shame kills that opportunity at the root.

Onsen Hotel New Welcity in Yugawara, Kanagawa, Japan.

There is no good argument to keep ignoring this. These homes are death traps for their owners. They disfigure neighborhoods. They stall the real estate cycle. And in cases where structural damage goes unchecked, they may even endanger adjacent properties or invite criminal activity. Ignoring them is not kindness; it is complicity.

Why Rural Japan is the Future

Most conversations about Japan AI infrastructure revolve around cities like Tokyo or Osaka. That’s a mistake. The future lies in the countryside. That’s where land, water, and geothermal energy in Japan actually exist in usable volumes.

Akiyaz is committed to helping these regions thrive. We envision:

  • Micro data centers powered by local geothermal systems
  • Edge computing networks managed by rural operators
  • Smart infrastructure for agriculture, tourism, and eldercare
  • Clean, reliable electricity drawn from Japan’s volcanic geography

All of this depends on rebuilding the Japanese energy grid to accommodate geothermal inputs and distributed AI infrastructure. We’re ready. We just need more stakeholders to join us.

This Isn’t Speculative. It’s Happening.

We are already in active talks with municipalities that want to convert closed ryokan into dual-purpose facilities: AI-capable workspaces with geothermal energy supporting both the machines and the local onsen. We’re building fiber connectivity, scouting geothermal potential, and deploying modern hardware to sites long written off as obsolete.

This isn’t about nostalgia. It’s about future-proofing Japan by using the tools we already have. Geothermal energy in Japan is not a theory. It is an asset waiting to be scaled.

A Call to Partners

Akiyaz is seeking partners who are serious about building the future, not just talking about it. We want to connect with:

  • Municipalities with geothermal access
  • Ryokan and onsen owners open to redevelopment
  • Energy investors ready to support infrastructure
  • AI companies seeking edge-based compute locations
  • Policy allies willing to fight for Japanese energy grid reform

If you are working on Japan AI infrastructure and not thinking about power, you are already behind. And if you are thinking about power and not looking at geothermal energy in Japan, you are missing the most scalable, sustainable option on the table.

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StrategyGeothermal Energy in Japan Can Power AI & Develop Rural Regions