Oracle Leads Race to Build Japan an Air-Gapped Cloud
Oracle is leading the race to build Japan an air-gapped cloud, sealed off from the internet. Washington wants it to counter Chinese hacking.
July 16, 2026 – 12:58 pm
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Oracle is in the lead to supply Japan’s government with an air-gapped cloud, according to The Financial Times. An air-gapped system is isolated from external access, safeguarding sensitive data from the open internet.
The driver is China. Washington has been urging Tokyo to strengthen its cyber defenses against Chinese hacking for years. This urgency has intensified as allies collaborate on weapons and strategies to deter Beijing.
A secure government cloud aims to facilitate the safe exchange of sensitive material between the US and Japan, ultimately fostering closer intelligence-sharing within the Five Eyes alliance.
Nothing is finalized, and Tokyo hasn’t made a decision yet. There’s a possibility Japan could divide the work among several vendors.
The deal aligns with a broader trend as governments increasingly seek sovereign clouds under their control rather than relying on foreign platforms. Oracle emphasizes data sovereignty as a key advantage, arguing that customers want ownership over where their data resides.
This crowded field includes major defense contractors and tech giants like Oracle, Amazon, Microsoft, and Google, all vying for government contracts. For Oracle, securing the Japan deal would be a significant win. For the US, it represents a step towards closer ties with an important ally.
The air-gapped cloud is just the beginning; sensitive secrets will follow once the infrastructure is in place.