Oracle leads race to sell top-secret cloud to Japan

Oracle ↗ 1.81% is emerging as the frontrunner in a competition to provide air-gapped, top-secret cloud services to Japan, a deal the United States considers essential for secure intelligence sharing between Tokyo and its allies, the Financial Times reported on Tuesday.techmeme+1

A Strategic Cloud for Japan's Security

The cloud infrastructure would be isolated from the public internet, mirroring the classified national security regions Oracle already operates for the U.S. Department of Defense and intelligence community. Oracle's existing credentials in handling top-secret and sensitive compartmented information for U.S. agencies have positioned it ahead of rivals in securing the Japanese contract.nextgov+2

The push comes as Japan accelerates its defense modernization. The country's Digital Agency in March formally selected five providers — including Oracle and domestic firm Sakura Internet — for its broader government cloud infrastructure, while separately, Japan has been weighing a U.S.-style "security cloud" to strengthen the Self-Defense Forces' information security capabilities. Oracle's bid for the classified tier represents the most sensitive layer of that evolving architecture, sitting above the general government cloud and designed for workloads that demand sovereign-grade isolation.japantimes+2

Oracle's Expanding Japan Footprint

Oracle has been deepening its presence in Japan through a planned $8 billion investment over the next decade in cloud computing and AI infrastructure, announced in April 2024 following a meeting between Oracle executives and Japanese Prime Minister Sanae Takaichi. SoftBank launched its Cloud Platform Type A service powered by Oracle Alloy in eastern Japan data centers in April 2026, with western Japan availability expected by October. Oracle Corporation Japan reported cloud services revenue of ¥83.2 billion in fiscal 2026, a 34.3% increase year over year.softbank+3

Cloud Momentum Beyond Japan

The Japan bid adds to a stretch of aggressive global expansion for Oracle. The company signed a landmark $300 billion computing deal with OpenAI as part of the Stargate AI infrastructure initiative, and recently closed an $88 million Air Force Cloud One contract in the United States. On Monday, Loews Hotels & Co announced it would implement Oracle OPERA Cloud Central services for distribution and guest recognition across its U.S. properties.prnewswire+4