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Oracle Leads Race to Supply Japan with Top‑Secret Cloud

Financial Times Companies •
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Oracle is winning the race to sell Japan an air‑gapped cloud service amid growing US pressure to tighten cyber security. The Texas‑based company is outpacing Amazon Web Services, Microsoft, and Google in offering a network isolated from the internet.

Japan chose a US provider after extensive talks, including a March conversation between Donald Trump and Prime Minister Sanae Takaichi. The US wants stronger cyber security to protect intelligence sharing and to enable Japan’s possible entry into Five Eyes.

An air‑gapped cloud is not connected to the internet, using secure gateways for data transfer. Oracle, founded by Larry Ellison, emerged as the frontrunner after signalling its willingness to deliver the required security. AWS and Microsoft offered commercial solutions but were less keen for business reasons.

Japan remains undecided; critics warn about cost, build time, and sovereignty concerns. US Ambassador George Glass oversees a working group, while debate continues over dependence on foreign cloud under Japan’s 2022 economic security law.