Japanese electric utility J-Power (Electric Power Development Co) has signed a 20-year virtual Power Purchase Agreement (vPPA) with Japanese telco KDDI to support the construction of a 51.5MW onshore wind farm in Kaminokuni-cho, Hokkaido, Japan.

Under the terms of the PPA, KDDI will receive the environmental value of the wind farm upon commencement of operations in the form of a non-fossil certificate. KDDI says it expects the energy generated by the wind farm to reduce CO2 emissions across its telco base stations by 10 percent in real terms.

The Kaminokuni No. 3 Wind Farm will comprise 12 wind turbines, each with a capacity of 4.3MW. J-Power expects to commence constriction in the first half of 2025, with commercial operations planned for September 2028.

According to the companies, the PPA is the largest onshore wind vPPA signed in Japan’s telco sector. It is the second vPPA between the two companies, following a 20-year agreement tied to the 19.5MW New Minami Osumi Wind Farm. That wind farm is comprised of five 4.3MW turbines and is expected to start commercial operations in December 2027.

Established in 2000 through a merger of DDI, KDD, and IDO, KDDI is Japan's second-largest telco provider. In addition to its telco offerings, it is also the parent company of Telehouse, which operates data centers around the world including across Asia.

KDDI has also begun to develop data centers itself. Last December, the firm announced that it was set to develop an AI data center at Green Front Sakai, the former factory site of Sharp in Sakai, Osaka. According to the companies, the data center will be the largest AI installation in Asia.

PPAs are growing in popularity across Japan, with several major data center operators signing long-term PPAs in recent months. In January, Amazon signed two PPAs with EDP Renewables APAC and X-Elio.