Japan Data Center Market - Investment Analysis & Growth Opportunities 2025-2030

JAPAN DATA CENTER MARKET SIZE & OVERVIEW

The Japan data center market size will witness investments of USD 13.35 billion by 2030, growing at a CAGR of 5.06% during the forecast period. Japan's data center and real estate sectors have emerged as two of the most important asset classes on the global stage. Recognized as a Tier 1 in the global data center market, Japan is set for significant expansion.

The data center market in Japan has developed into a powerhouse within the APAC region. The Japan data center market accounted for over 8% of total data center investments within the Asia Pacific (APAC) data center region in 2024, solidifying its position as the third-largest market after China and Australia. Furthermore, the Nippon Data Center Association, in collaboration with leading data center operators and IT industry investors, founded the Japan Data Center Council to strengthen Japan’s IT infrastructure and enhance its global connectivity.

The average construction cost ranges between $12.5 million to $13.5 million per MW; this is likely to increase by 5%-7% YoY. The cost is one of the highest in the APAC region and globally.  Furthermore, Tokyo and Osaka are two of the major smart cities in the country. The presence of these smart cities makes the country a major market for the development of data centers. It will lead to an increased number of edge and modular data centers due to requirements for faster data processing.

JAPAN DATA CENTER MARKET KEY HIGHLIGHTS

1. As the third-largest economy in the world, it boasts an advanced infrastructure, robust manufacturing capabilities, as well as a highly innovative IT and tech ecosystem.
2. Currently, several plans and construction projects are in the pipeline to achieve over 2.1 gigawatts (GW) of data center power capacity. The Japan data center market growth is primarily fueled by several key factors, including the growing reliance on cloud computing services, the increasing requirements for AI technologies, the trend of outsourcing IT services, and the movement toward data onshoring.
3. Despite having entry barriers and high construction costs, companies are choosing to establish their operations in main urban centers such as Tokyo and Osaka. These cities are expected to offer opportunities for growth over the coming years when compared with the other nations in the APAC region.
4. Currently, Japan has around 40 operational submarine cables. The country is witnessing investment in eight more submarine cables, which are expected to become operational by 2025-2027. Multiple submarine cables enable high-speed data transmission, decrease latency, as well as meet the increasing demand for broadband and cloud services, which are essential for Japan's digital economy.
5. In January 2025, the Japanese Government announced its plans to relocate tech industries, including data centers and semiconductor factories to areas near low-carbon energy hubs. These hubs will include offshore wind farms and nuclear plants. The strategy, part of the "GX 2040 Vision," focuses on achieving sustainable growth by integrating energy efficiency with industrial competitiveness.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size available in the investment, area, power capacity, and Japan colocation market revenue.
2. An assessment of the data center investment in Japan by colocation, hyperscale, and enterprise operators.
3. Data center investments in the area (square feet) and power capacity (MW) across cities in the country.
4. A detailed study of the existing Japan data center market landscape, an in-depth market analysis, and insightful predictions about the Japan data center market size during the forecast period.
5. Snapshot of existing and upcoming data center facilities in Japan
6. Facilities Covered (Existing): 112
7. Facilities Identified (Upcoming): 47
8. Coverage: 18+ Locations
9. Existing vs. Upcoming (Data Center Area)
10. Existing vs. Upcoming (IT Load Capacity)
11. Data center colocation market in Japan
12. Colocation Market Revenue & Forecast (2021-2030)
13. Retail Colocation Revenue (2021-2030)
14. Retail & Wholesale Colocation Pricing
15. The Japan data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
16. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the market.
17. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the market.
18. A transparent research methodology and the analysis of the demand and supply aspects of the market.

JAPAN DATA CENTER MARKET VENDOR INSIGHTS

1. Some of the local data center operators present in the Japan data center market are NTT Communications, AT TOKYO, Fujitsu, IDC Frontier, Telehouse (KDDI), and ARTERIA Networks. Additionally, there are several regional and global operators such as Equinix, AirTrunk, MC Digital Realty, Colt Data Centre Services, STACK Infrastructure, and Digital Edge.
2. In response to the growing digital economy and ongoing digitalization in Japan, several new operators are entering the Japanese data center market. The new entrants in the Japan data center market include ST Telemedia Global Data Centres, Vantage Data Centers, Princeton Digital Group, NEXTDC, CyrusOne, EdgeConneX, Gaw Capital & GDS Services, Ada Infrastructure, Empyrion Digital, and SC Zeus Data Centers.
3. The Japan data center market is experiencing the emergence of self-built hyperscale data center facilities by major operators such as Google, Microsoft, and Amazon Web Services (AWS). This development is expected to impact the colocation market in Japan. Since these hyperscale operators store workloads in their own data center facilities, it may reduce the source of revenue generation for colocation operators.
4. Tokyo Electric Power Company (TEPCO) and Kansai Electric Power Company (KEPCO) are two of the major utility and power providers in Japan, supplying electricity to data centers across the country. Some of their data center clients include NTT Communications, Vantage Data Centers, CyrusOne, and STACK Infrastructure.

EXISTING VS. UPCOMING DATA CENTERS

1. Existing Facilities in the Region (Area and Power Capacity)
2. Tokyo
3. Osaka
4. Other Cities
5. List of Upcoming Facilities in the Region (Area and Power Capacity)
6. Tokyo
7. Osaka
8. Other Cities

REPORT COVERAGE:

This report analyses the Japan data center market share. It elaborately 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:

1. IT Infrastructure
2. Server Infrastructure
3. Storage Infrastructure
4. Network Infrastructure
5. Electrical Infrastructure
6. UPS Systems
7. Generators
8. Transfer Switches & Switchgears
9. PDUs
10. Other Electrical Infrastructure
11. Mechanical Infrastructure
12. Cooling Systems
13. Racks
14. Other Mechanical Infrastructure
15. Cooling Systems
16. CRAC and CRAH Units
17. Chillers Units
18. Cooling Towers, Condensers and Dry Coolers
19. Other Cooling Units
20. General Construction
21. Core & Shell Development
22. Installation & Commissioning Services
23. Engineering & Building Design
24. Fire Detection & Suppression
25. Physical Security
26. Data Center Infrastructure Management (DCIM)
27. Tier Standards
28. Tier I & Tier II
29. Tier III
30. Tier IV 
31. Geography
32. Tokyo
33. Osaka
34. Other Cities

JAPAN DATA CENTER MARKET VENDORS

1. IT Infrastructure Providers: Arista Networks, Atos, Broadcom, Cisco, Dell Technologies, Fujitsu, Hewlett-Packard Enterprise, Hitachi Vantara, Huawei Technologies, IBM, Inspur, Lenovo, NEC, NetApp, and Oracle.
2. Data Center Construction Contractors & Sub-Contractors: Arup, AECOM, 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, and Taisei Corporation.
3. Support Infrastructure Providers: 3M, ABB, Alfa Laval, Caterpillar, Cummins, Delta Electronics, Eaton, Fuji Electric, HITEC Power Protection, Johnson Controls, Kawasaki Heavy Industries, Rehlko (Kohler), Legrand, Mitsubishi Electric, Rittal, Rolls Royce, Schneider Electric, Siemens, STULZ, and Vertiv.
4. Data Center Investors: AirTrunk, Alibaba Cloud, Amazon Web Services, AT TOKYO, Colt Data Centre Services, Digital Edge, Equinix, Fujitsu, Goodman, Google, IDC Frontier, Internet Initiative Japan (IIJ), MC Digital Realty, Microsoft, NTT Communications, SCSK Corporation (NETXDC), STACK Infrastructure, Telehouse, Tencent Cloud, and TIS INTEC Group.
5. New Entrants: Ada Infrastructure, CapitaLand, CyrusOne, EdgeConneX, Empyrion Digital, ESR, GDS Services, Keppel Data Centres, NEXTDC, Princeton Digital Group, SC Zeus Data Centers, ST Telemedia Global Data Centres, Vantage Data Centers, and Yondr.