Before Environmental Friendly Holdings can sell AI capacity in Tomakomai, it has to secure serious power. The company said its subsidiary AI Tech Tomakomai will build a 66kV extra-high-voltage substation at the Hokkaido site under a ¥3.94bn, tax-included contract with Yurtec. Management describes the asset as core infrastructure for the project, a step meant to move the site from an initial 10MW setup to a longer-term 50MW receiving-capacity plan.
| Item | Detail |
|---|---|
| Project asset | 66kV extra-high-voltage substation equipment for the Tomakomai AI data center |
| Location | Tomakomai, Hokkaido |
| Contractor | Yurtec Corporation |
| Contract value | ¥3.94bn, tax included |
| Construction start | July 1, 2026 |
| Completion and handover | Dec. 13, 2027 |
| Initial operating plan | 10MW, with power receipt from July 2026 and operations targeted for October 2026 |
| Longer-term plan | Switch phase one to extra-high-voltage receiving and expand toward 50MW |
| Funding plan | Internal funds, warrant-exercise proceeds, and possible bank borrowing |
What the contract actually buys
The fixed-asset purchase is not a vague electrical placeholder. Environmental Friendly says it covers 66kV receiving equipment, a main transformer, gas-insulated switchgear, protection and control equipment, extra-high-voltage cable, grounding, and related civil and building works at the Tomakomai site. Construction is scheduled to start on July 1, 2026, with completion and handover set for Dec. 13, 2027.
That matters because AI Tech Tomakomai plans to start phase one at 10MW, begin receiving power in July 2026, and target business operations from October 2026 using high-voltage receiving equipment. Once the new substation is finished, the company says it plans to switch that first phase to extra-high-voltage receiving and then add equipment in stages toward 50MW.
How management says it will pay
Environmental Friendly says the substation will be funded with internal funds and money raised through warrant exercises, while bank borrowing is also under consideration. A separate same-day financing notice makes that more specific. It says previously raised capital is being redirected toward the Tomakomai project, including the substation and ¥2.94bn of land-preparation and foundation work for the first phase.
In that filing, the company says ¥1.147bn of still-unallocated proceeds from its 21st warrants will go toward the substation, and that ¥140mn from shares issued in May 2025 plus ¥128mn already raised via 22nd warrants will also help cover the first substation payment. It also says a planned ¥437mn from the 22nd warrants is earmarked for phase-one site works, and that the 23rd warrants, which had not been exercised as of June 19, were retargeted toward the AI data-center project as well.
What remains unclear
The headline ¥3.94bn does not fund the whole build-out. Environmental Friendly says the Yurtec contract is only one part of the second-phase investment plan, and it also says additional first-phase works may be needed after technical review. Those add-ons have not been fixed in scope or price, and no decision has been made on awarding them.
Nor is the financing fully settled. Part of the plan depends on future warrant exercises, while borrowing remains under consideration. In the funding-change filing, the company also notes that if warrant exercises do not progress as expected, it may seek alternative financing. For now, the Tomakomai build is less a story about server racks than about whether the power infrastructure and funding line up on time.