Internet Initiative Japan Inc. (IIJ, NASDAQ: IIJI, TSE1: 3774), one of Japan’s leading Internet access and comprehensive network solutions providers, today announced its decision to commercialize the modular eco-data center based on the results of the proof of concept testing conducted this past February, with construction beginning in June 2010.

IIJ was the first company in Japan to attempt to test data centers with container units that use outside- air-cooling, and with test results showing a Partial PUE (*1) of under 1.1, their effectiveness has been verified. With those results, IIJ believes it can raise its power usage efficiency to the targeted 1.2 level year round, and so the decision was made to go into commercial production.

IIJ will use this data center as a facility for the IIJ GIO cloud service, and will expand those facilities to an estimated 20 modules (housing 5,000 servers) as demand for the service rises. The current investment plan calls for 5 modules (housing 1,600 servers) to be built and operational by February 2011 at a cost of about JPY 1.1 billion. Starting next fiscal year, the facilities will be expanded to keep pace with demand, and as a next-generation data center that can be rapidly scaled out, one of the characteristics of cloud computing, IIJ will strengthen its ties with local governments and power company groups, and will examine the possibility of opening multiple data centers nationwide.

This data center will reduce the current facility costs of IIJ GIO by 40%, raising the cost competitiveness of the cloud service and reducing annual CO2emissions by about 4,000 tons in comparison with conventional data centers. IIJ GIO will thus be able to differentiate itself both in cost and environmental benefits as well as maintain its high service quality, which will enable IIJ to expand its market share in the high-growth cloud market.

The IIJ Group will continue to promote green IT while actively pursuing the development of advanced data centers that have the lower costs and higher energy efficiency that are most appropriate for the cloud environment.