Strategic data center siting can mitigate dilemmas between decarbonization and digitalization in Japan
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Digitalization and decarbonization are central pillars of sustainable development, yet their integration remains underexplored. While energy transition toward net-zero emissions raises electricity prices, data centers—the core of digital infrastructure—are rapidly increasing local electricity demand, further straining the power system. Here, we employ a high-resolution power system model covering 1,741 municipalities across Japan to examine the role of data center siting strategies in harmonizing digital growth and climate change mitigation. Our results highlight that while data center expansion and decarbonization efforts jointly increase electricity costs, distributing data centers away from urban areas leverages regional renewable energy, mitigates cost increases, and reduces reliance on fossil fuels and carbon removal technologies. Notably, these benefits hold even under practical constraints that aim to ensure infrastructure access while avoiding natural disaster risks and land-use conflicts. Our insights offer actionable guidance for integrated digital and energy infrastructure planning, and the framework is broadly transferable.