Japan Data Center Market - Investment Analysis and Growth Opportunities 2020-2025

INDUSTRY INSIGHTS

The Japan data center market size to cross USD 7 billion, growing at a CAGR of over 3% during the forecast period. Equinix and GIC, MC Digital Realty, NTT Communications, AT TOKYO, Internet Initiative Japan, and Colt DCS are some of the prominent investors in the Japan data center market. In 2018, around 30% of organizations in Japan implemented cloud computing infrastructure. In February 2020, the Japanese government agreed to a deal with AWS to help move HR systems and document management tools in the cloud environment by 2025. YouTube is the most active social media platform in Japan, accounting for about 75% share in 2019, followed by Facebook, Line, Twitter, Instagram, and Ameblo. The entry of international businesses into the country is driving high data usage due to the increased usage of applications and platforms such as data analytics, big data, and artificial intelligence. Artificial Intelligence (AI) is playing a role in IoT application deployments like AI-based security and privacy of IoT devices, edge computing of IoT devices, and more. The market in Japan has now evolved with international and global hyperscale cloud providers. Amazon Web Services (AWS), Google, Microsoft Azure, and IBM SoftLayer cloud service providers are expanding their presence in Tokyo and Osaka markets.  

Submarine cable projects have been increased in the region to attract more data center operations and investors. In 2020, the submarine cable projects like Southeast Asia-Japan Cable 2 (SJC2), JUPITER, Japan-Guam-Australia North (JGA-N), and Okinawa Cellular Cable would connect Japan with the US, China, Taiwan, Hong Kong, Thailand, and Singapore. In Japan, construction projects are not completely halted due to COVID-19. Data center operations in Japan are carried on without any disruption by taking precautionary measures to ensure safety for employees. The impact of operations is expected to range between low and moderate.

KEY DELIVERABLE  

• An assessment of the data center investment in the market by colocation, hyperscale, and enterprise data center operators
• Exhaustive insights of the impact of the COVID-19 on the Japan data center market
• Investments in terms of area (square feet) and power capacity (MW) in major cities in the country
• Data center colocation market in Japan
• Retail & wholesale colocation Pricing in Japan
• A detailed study of the existing market landscape, an in-depth industry analysis. Offers insightful predictions about the size of the Japan data center market during the forecast period
• Classification of the data center market in Japan into multiple segments and sub-segments with sizing and forecast
• A comprehensive analysis of the latest market trends, potential opportunities, and growth restraints, and future prospects for the data center market
• Presence of prominent data center investors, construction contractors, and infrastructure vendors
• A transparent market research methodology and the analysis of the demand and supply aspect of the market

KEY HIGHLIGHTS OF THE REPORT:

• In Japan, the adoption of cloud-based services, IoT, and AI is the major driving factor for the growth of data centers and high-power computing servers. A majority of data centers are using blade types of servers for developing a high-density computing environment.
• The market is witnessing the adoption of 100 GbE and 40 GbE switches at the aggregator layer and low capacity switches namely, 25 GbE and 10 GbE switches at top of the rack layers.
• The use of VRLA battery-based UPS systems is likely to be replaced by lithium-ion batteries in the region.
• Majority data centers in the region are equipped with gas generators as the cost of the fuel is low.  
• The data center market in Japan is dominated by free cooling systems, using evaporative coolers, free cooling chillers, adiabatic coolers, and air/water side economizers.
• Greenfield data center projects are witnessing increased investment from local and global data center providers as they are aiming to expand their presence.
• Osaka and Tokyo area the major cities, which are involved in greenfield developments in the region. 

REPORT COVERAGE:

This report offers a detailed analysis of the Japan data center investments in terms of infrastructure and geography. It discusses sizing and estimation for different segments with respect to the investment in data centers. The segmentation includes: 

• Infrastructure Type
  • IT Infrastructure
  • Electrical Infrastructure
  • Mechanical Infrastructure
• IT Infrastructure
  • Server
  • Storage
  • Network
• Electrical Infrastructure
  • UPS
  • Generators
  • Transfer Switches and Switchgears
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers & Dry Coolers
  • Other Units
  • Racks
  • Other Mechanical Infrastructure
• General Construction
  • Building Development
  • Installation & Commissioning Services
  • Building Design
  • Physical Security
  • DCIM
• Tier Segments
  • Tier I & Tier II
  • Tier III
  • Tier IV
• Geography
  • Osaka
  • Other Cities  

TARGET AUDIENCE:

• Datacenter Real Estate Investment Trusts (REIT)
• Datacenter Construction Contractors
• Datacenter Infrastructure Providers
• New Entrants
• Consultants/Consultancies/Advisory Firms
• Corporate and Governments Agencies

WHY PURCHASE THIS REPORT?

• To gain competitive intelligence about the industry and players in the market
• To focus on the niche market
• To offer a presentation-ready format and easy-to-interpret data
• To enable decision-makers to make informed and profitable choices
• To provide the expert quantitative and qualitative analysis on the revenue and growth projections of the Japan data center market