INDUSTRY INSIGHTS

The Japan data center market size will witness investments of USD 11.44 billion by 2028, growing at a CAGR of 5.93% during the forecast period. Japan is among the top and established data center markets in the APAC region which comes in the fourth position after China, Australia, and India in terms of data center investment in 2022. The Japan data center market has the presence of local and global operators such as Equinix, MC Digital Realty, AirTrunk, Colt Data Centre Services (Colt DCS), Telehouse, NTT Communications, Digital Edge, AT TOKYO, Fujitsu, ARTERIA Networks, SCSK Corporation (netXDC) and among others. 

Japan is the most expensive country to build a data center facility in the APAC region. As per Turner & Townsend, the construction costs in Tokyo in 2022 were around USD 11.40 per watt. Also, Japan's land price and power cost are higher than other APAC countries such as India, China, and South Korea. Despite being the most expensive country to build a facility with high land and electricity prices, the market is witnessing a boom and growth in investment through several new entrants and existing operators. 

The high internet and social media penetration across the country, driven by the deployment of 5G services, better and improved inland connectivity, availability of renewable energy, and free cooling solutions, makes Japan an attractive market for investors. Further, the Act on the Protection of Personal Information (APPI) is the personal data protection law that protects the privacy of the country's citizens, enacted in 2003. In 2020, the Act was amended and enacted in April 2022. The Japan data center market is mostly concentrated in the Tokyo and Osaka region, which houses around 80% of the existing capacity in the region.

KEY HIGHLIGHTS

• The Japan data center market is one of the APAC region's most developed and technologically advanced data center markets. It is in the top hot form witnessing several new investments from local and global operators.
• Besides the colocation operators, the country witnessed new investments from hyper-scaler Google. The company is developing its self-built facility in Inzai City, which is expected to be online by 2023.
• Japan has over 100 operational colocation data centers. Most colocation facilities are being developed according to Tier III standards. For instance, Digital Edge opened its n facility OSA1 in Osaka, certified as Tier III.
• The government is more focused on promoting local enterprises; hence, foreign companies could face several challenges while setting up a business.
• The country is also witnessing improvement in submarine and inland connectivity. For instance, Topaz, Apricot, and Southeast Asia-Japan Cable 2 (SJC2) are some submarine cables under development that will connect Japan with the U.S., Canada, and other APAC countries.
• Significant deployment and adoption of 5G services in Japan will fuel data traffic and further grow the demand for more data centers. For instance, Edge Centres has planned to develop a new edge facility in Okinawa.
• The increasing trend of procuring renewable energy to power the facilities in the country is likely to continue during the forecast, which will contribute to the country’s goal of becoming carbon neutral by 2050.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and Japan colocation market revenue.
• An assessment of the data center investment in Japan by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across states in the country.
• A detailed study of the existing Japan data center market landscape, an in-depth industry analysis, and insightful predictions about industry size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Japan
  • Facilities Covered (Existing): 100+
  • Facilities Identified (Upcoming): 25
  • Coverage: 18+ Locations
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in Japan
  • Colocation Market Revenue & Forecast (2022-2028)
  • Wholesale vs Retail Colocation Revenue (2022-2028)
  • Retail Colocation Pricing
  • Wholesale Colocation Pricing
• The Japanese market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

• Some key colocation investors in the Japan data center market include Equinix, MC Digital Realty, AirTrunk, AT TOKYO, Digital Edge, Colt Data Centre Services (Colt DCS), SCSK Corporation (netXDC), and others.
• The Japan data center market also witnessed several new entrants expanding their presence there. These include ST Telemedia Global Data Centres, Princeton Digital Group, STACK Infrastructure, Edge Centres, Vantage Data Centers, CyrusOne and others.
• The cloud operator Alibaba opened its third data center/ availability zone in Tokyo. Also, Tencent Cloud has planned to open its third data center/ availability zone in Japan, likely in Tokyo.
• The country is also witnessing an increase in the adoption of cloud services. Amazon Web Services, Microsoft, Google, Oracle, Alibaba Cloud, IBM Cloud, and Tencent Cloud have their dedicated cloud region across Osaka and Tokyo.
• Telecom operators such as NTT DOCOMO, KDDI, SoftBank, and Rakuten are the major telecom operators who have either deployed 5G technology in some cities on a trial basis or are in the process of launching commercial 5G services across the country.
• The data center operators are increasing their market share and presence across the country by either acquiring the operators or investing in the company. For instance, Vantage Data Centers marked its presence in the Japan data center market by acquiring Agile Data Centers (AgileDC).

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
• Tokyo
• Osaka
• Other Cities
• List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Japan data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC and CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers, and Dry Coolers
  • Economizers and Evaporative Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Building & Engineering Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Hitachi Vantara, Huawei Technologies, IBM, Inspur, Lenovo, NEC, NetApp, and Oracle.
• Data Center Construction Contractors & Sub-Contractors: AECOM, Arup, Daiwa House Industry, Fuji Furukawa Engineering & Construction, Hibiya Engineering, ISG, Kajima Corporation, Keihanshin Building, Linesight, MARCAI DESIGN, Meiho Facility Works, Nikken Sekkei, NTT FACILITIES, Obayashi Corporation, SHINRYO Corporation, TAISEI Corporation.
• Support Infrastructure Providers:3M, ABB, Alfa Laval, Caterpillar, Cummins, Delta Electronics, Eaton, Fuji Electric, HITEC Power Protection, Johnson Controls, Kawasaki Heavy Industries, KOHLER-SDMO, Legrand, Mitsubishi Electric, Rittal, Rolls-Royce, Schneider Electric, Siemens, STULZ and Vertiv.
• Data Center Investors: AirTrunk, Alibaba Cloud, ARTERIA Networks, AT TOKYO, Colt Data Centre Services (Colt DCS), Digital Edge, Equinix, Fujitsu, Google, IDC Frontier, Internet Initiative Japan (IIJ), MC Digital Realty, NTT Communications, SCSK Corporation (netXDC), Telehouse, Tencent Cloud, TIS INTEC Group.
• New Entrants: CyrusOne, Edge Centres, ESR, NEXTDC, Princeton Digital Group, STACK Infrastructure, ST Telemedia Global Data Centres, Vantage Data Centers.