Have a question?
Please get in touch with our team in case of any queries
THE JAPAN DATA CENTER MARKET SIZE WAS VALUED AT USD 9.71 BILLION IN 2023 AND IS EXPECTED TO REACH USD 14.48 BILLION BY 2029, GROWING AT A CAGR OF 6.88% DURING THE FORECAST PERIOD
The Japan Data Center Market Report Includes Size in Terms of
- IT Infrastructure: Servers, Storage Systems, and Network Infrastructure
- Electrical Infrastructure: UPS Systems, Generators, Transfer Switches & Switchgears, PDUs, and Other Electrical Infrastructure
- Mechanical Infrastructure: Cooling Systems, Rack Cabinets, and Other Mechanical Infrastructure
- Cooling Systems: CRAC & CRAH Units, Chiller Units, Cooling Towers, Condensers & Dry Coolers, Economizers & Evaporative Coolers, and Other Cooling Units
- General Construction: Core & Shell Development, Installation & Commissioning Services, Engineering & Building Design, Fire Detection & Suppression Systems, Physical Security, and DCIM
- Tier Standard: Tier I & Tier II, Tier III, and Tier IV
- Geography: Tokyo, Osaka, and Other Cities
Get Insights on 107 Existing Data Centers and 41 Upcoming Facilities across Japan
This report includes market data points, ranging from trend
analyses to market estimates & forecasts that you can customize
JAPAN DATA CENTER MARKET REPORT SCOPE
REPORT ATTRIBUTE | DETAILS |
---|---|
MARKET SIZE (INVESTMENT) | USD 14.48 Billion (2029) |
MARKET SIZE (AREA) | 1,363 thousand sq. Feet (2029) |
MARKET SIZE (POWER CAPACITY) | 280 MW (2029) |
CAGR INVESTMENT (2023-2029) | 6.88% |
COLOCATION MARKET SIZE (REVENUE) | USD 4.42 Billion (2029) |
HISTORIC YEAR | 2020-2022 |
BASE YEAR | 2023 |
FORECAST YEAR | 2024-2029 |
INDUSTRY INSIGHTS
The Japan data center market will witness investments of USD 14.48 billion by 2029, growing at a CAGR of 6.88% during the forecast period. Tokyo continues to be a hotspot for investors and operators looking for data center investments in the APAC region. This growth is driven by Japan’s growing reliance on cloud services and the expansion of global cloud providers. Further, major global cloud operators are investing heavily in the Japan data center market and rapidly augmenting their presence through cloud regions and data center facilities. Japan has become a hub for these operators, with Microsoft, Amazon Web Services (AWS), Google, Oracle, Tencent Cloud, IBM Cloud, and Alibaba Cloud operating their own dedicated cloud regions in the country.
The Japan data center market is witnessing significant growth driven by the increasing demand for digital services, cloud computing, big data, and the Internet of Things (IoT). The country’s strategic location and advanced technology infrastructure make it an attractive destination for data center investment. Also, the demand for digital infrastructure in Japan is rising, enabling the boom in its data center market growth. Plans and construction activities are underway to attain over 2 GW of data center power capacity.
In partnership with various data center operators and IT industry investors, the Nippon Data Center Association established the Japan Data Center Council to improve the IT sector between Japan and the overseas market. Furthermore, the Japan data center market is evolving, focusing on sustainability and technological advancements; this is helping to meet the growing needs of businesses and ensure resilient digital infrastructure.
KEY HIGHLIGHTS
- Japan has around 107 operational colocation data centers. Most are being developed according to Tier III standards. The Japan data center market has the presence of some local and global operators, such as AirTrunk, AT TOKYO, Colt Data Centre Services, Digital Edge, Equinix, Fujitsu, IDC Frontier, Internet Initiative Japan (IIJ), MC Digital Realty, NTT Communications, SCSK Corporation (NETXDC), Telehouse, and others.
- Japan’s Ministry of Economy, Trade, and Industry announced that more than 100 regional governments have shown interest in hosting new data centers and planning to decentralize data centers. The regions offered as new data center locations include Uki City, Yoshinogari Town, Tottori City, and Nogata City.
- Japan's average construction cost per watt ranges between $10 and $11. The cost is between $10 million and $11 million per MW, likely increasing by 5%- 7% YoY.
- GLP, the logistics real estate firm based in the APAC region, is among the new entrants in the Japan data center market. The company launched Ada Infrastructure, a new data center platform, and planned to invest over USD 10 billion (1.5 trillion yen) over the next five years to develop data centers across Japan.
- The deployment of 5G networks will boost the region's digital economy and lead to a higher demand for high-bandwidth networking infrastructure. Owing to smart city initiatives carried out by government agencies, the adoption of software-defined networking (SDN) is likely to increase.
WHY SHOULD YOU BUY THIS RESEARCH?
- Market size is available in terms of 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 cities in the country.
- A detailed study of the existing Japan data center market landscape, an in-depth market 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): 107
- Facilities Identified (Upcoming): 41
- Coverage: 17+ Cities
- Existing vs. Upcoming (Area)
- Existing vs. Upcoming (IT Load Capacity)
- Data Center Colocation Market in the Japan
- Colocation Market Revenue & Forecast (2023-2029)
- Wholesale vs. Retail Colocation Revenue (2023-2029)
- Retail Colocation Pricing
- Wholesale Colocation Pricing
- The Japan data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
- This report provides a comprehensive analysis of the industry's latest trends, growth rate, potential opportunities, growth restraints, and prospects.
- This section provides a business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors in the industry.
- A transparent research methodology and the analysis of the demand and supply aspects of the industry.
VENDOR LANDSCAPE
- Some of the key investors in the Japan data center market are AirTrunk, AT TOKYO, Colt Data Centre Services, Digital Edge, Equinix, Goodman, Princeton Digital Group, MC Digital Realty, NTT Communications, Vantage Data Centers, ST Telemedia Global Data Centres, STACK Infrastructure and others.
- Hyperscalers are building their own self-built data centers in partnership with real estate developers, which is estimated to impact the industry for colocation providers. For instance, in March 2023, Google announced the launch of its first self-built data center facility in the Inzai area of Greater Tokyo.
- In January 2024, Amazon Web Services plans to invest USD 15.2 billion to enhance its cloud computing infrastructure in Japan by 2027. The company aims to expand its data center facilities in both Tokyo and Osaka
- Several global companies are entering the Japan data center market by acquiring data center facilities. For instance, In May 2023, Mapletree Investments entered the Japan data center market by acquiring a new facility in Osaka. The purchase, valued at over USD 372 million, was estimated to be financed through a combination of debt and the funds received from equity fundraising.
- The existing colocation operators are also expanding their portfolios. For instance, MC Digital Realty, Equinix, NTT Communications, Colt Data Centre Services, AT TOKYO, and others are developing several new facilities in the Japan data center market.
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)
- Tokyo
- Osaka
- Other Cities
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
- Transfer Switches & Switchgears
- PDUs
- Other Electrical Infrastructure
- Mechanical Infrastructure
- Cooling Systems
- Rack Cabinets
- Other Mechanical Infrastructure
- Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers & Dry Coolers
- Economizers & Evaporative Coolers
- Other Cooling Units
- General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression Systems
- Physical Security
- Data Center Infrastructure Management (DCIM)
- Tier Standard
- Tier I & Tier II
- Tier III
- Tier IV
- Geography
- Tokyo
- Osaka
- Other Cities
VENDOR LANDSCAPE
- IT Infrastructure Providers: Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise (HPE), Hitachi Vantara, Huawei Technologies, IBM, Inspur, Lenovo, NEC, NetApp, and Oracle.
- 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, TAISEI Corporation.
- Support Infrastructure Providers: 3M, ABB, Alfa Laval, Caterpillar, Cummins, Delta Electronics, Eaton, Fuji Electric, HITEC Power Protection, Johnson Controls, Kawasaki Heavy Industries, KOHLSER-SDMO, Legrand, Mitsubishi Electric, Rittal, Rolls-Royce, Schneider Electric, STULZ, Siemens, Vertiv.
- 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), Telehouse, Tencent Cloud, TIS INTEC Group.
- New Entrants: Ada Infrastructure, Edge Centres, CyrusOne, ESR, GDS Services, Keppel Data Centres, NEXTDC, Princeton Digital Group (PDG), SC Zeus Data Center, STACK Infrastructure, ST Telemedia Global Data Centres, Vantage Data Centers, Yondr.
Frequently Asked Questions
What factors are driving the Japan data center market?
How much MW of power capacity will be added across Japan during 2024-2029?
What is the growth rate of the Japan data center market?
How many existing and upcoming data center facilities exist in Japan?
How big is the Japan data center market?
Who are the key investors in the Japan data center market?
How big is the Japan data center market?
What is the growth rate of the Japan data center market?
What factors are driving the Japan data center market?
How many existing and upcoming data center facilities exist in Japan?
How much MW of power capacity will be added across Japan during 2024-2029?
Who are the key investors in the Japan data center market?
How much MW of power capacity will be added across Japan during 2024-2029?
What is the growth rate of the Japan data center market?
How big is the Japan data center market?
What factors are driving the Japan data center market?
How many existing and upcoming data center facilities exist in Japan?
Who are the key investors in the Japan data center market?
The Japan data center market size is projected to reach USD 14.48 billion by 2029, growing at a CAGR of 6.88% from 2023 to 2029.
The following factors are likely to contribute to the growth of the Japan data center market during the forecast period:
- Improvements in Inland & Submarine Connectivity
- Increasing Adoption of Cloud Services
- Increase in Data Center Investments & Activities
- M&As, JVs, and Partnerships to Fuel Data Center Growth
- Big Data & IoT Driving Data Center Investments
Base Year: 2023
Forecast Year: 2024-2029
The report considers the present scenario of the Japan data center market and its market dynamics for 2024-2029. It provides a detailed overview of several market growth enablers, restraints, and trends. The study also includes the industry's demand and supply aspects.
The report includes the investment in the following areas:
- IT Infrastructure
- Servers
- Storage Systems
- Network Infrastructure
- Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgears
- PDUs
- Other Electrical Infrastructure
- Mechanical Infrastructure
- Cooling Systems
- Rack Cabinets
- Other Mechanical Infrastructure
- Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers & Dry Coolers
- Economizers & Evaporative Coolers
- Other Cooling Units
- General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression Systems
- Physical Security
- Data Center Infrastructure Management (DCIM)
- Tier Standard
- Tier I & Tier II
- Tier III
- Tier IV
- Geography
- Tokyo
- Osaka
- Other Cities
VENDOR LANDSCAPE
- IT Infrastructure Providers
- Arista Networks
- Atos
- Broadcom
- Cisco Systems
- Dell Technologies
- Fujitsu
- Hewlett Packard Enterprise (HPE)
- Hitachi Vantara
- Huawei Technologies
- IBM
- Inspur
- Lenovo
- NEC
- NetApp
- Oracle
- 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
- 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
- STULZ
- Siemens
- Vertiv
- Data Center Investors
- AirTrunk
- Alibaba Cloud
- Amazon Web Services
- AT TOKYO
- Colt Data Centre Services
- Digital Edge
- Equinix
- Fujitsu
- Goodman
- IDC Frontier
- Internet Initiative Japan (IIJ)
- MC Digital Realty
- Microsoft
- NTT Communications
- SCSK Corporation (NETXDC)
- Telehouse
- Tencent Cloud
- TIS INTEC Group
- New Entrants
- Ada Infrastructure
- Edge Centres
- CyrusOne
- ESR
- GDS Services
- Keppel Data Centres
- NEXTDC
- Princeton Digital Group (PDG)
- SC Zeus Data Center
- STACK Infrastructure
- ST Telemedia Global Data Centres
- Vantage Data Centers
- Yondr
Exhibit 1 Third-Party Data Centers Snapshot
Exhibit 2 Third-Party Data Center Snapshot by Cities
Exhibit 3 Area Developed by Cities (Million Square Feet)
Exhibit 4 Power Capacity by Cities (MW)
Exhibit 5 Data Center Market Size & Forecast by Investment 2020-2029 ($ Billion)
Exhibit 6 Data Center Market Size & Forecast by Area 2020−2029 (Thousand Square Feet)
Exhibit 7 Data Center Market Size & Forecast by Power Capacity 2020−2029 (MW)
Exhibit 8 Data Center Colocation Service Revenue: Market Size & Forecast by 2020−2029 ($ Million)
Exhibit 9 Retail vs. Wholesale Colocation Revenue: Market Size & Forecast by 2020−2029 ($ Million)
Exhibit 10 Retail & Wholesale Colocation Pricing 2023
Exhibit 11 Market Size & Forecast by IT Infrastructure 2020−2029 ($ Billion)
Exhibit 12 Market Size & Forecast by Electrical Infrastructure 2020−2029 ($ Million)
Exhibit 13 Market Size & Forecast by Mechanical Infrastructure 2020−2029 ($ Million)
Exhibit 14 Market Size & Forecast by Cooling Systems 2020−2029 ($ Million)
Exhibit 15 Market Size & Forecast by General Construction 2020−2029 ($ Million)
Exhibit 16 Market Size & Forecast by Tier Standards 2020−2029 ($ Million)
Exhibit 17 Data Center Market Size & Forecast in Tokyo by Investment 2020-2029 ($ Million)
Exhibit 18 Data Center Market Size & Forecast in Tokyo by Area 2020−2029 (Thousand Square Feet)
Exhibit 19 Data Center Market Size & Forecast in Tokyo by Power Capacity 2020−2029 (MW)
Exhibit 20 Data Center Market Size & Forecast in Osaka by Investment 2020-2029 ($ Million)
Exhibit 21 Data Center Market Size & Forecast in Osaka by Area 2020−2029 (Thousand Square Feet)
Exhibit 22 Data Center Market Size & Forecast in Osaka by Power Capacity 2020−2029 (MW)
Exhibit 23 Data Center Market Size & Forecast in Other Cities by Investment 2020-2029 ($ Million)
Exhibit 24 Data Center Market Size & Forecast in Other Cities by Area 2020−2029 (Thousand Square Feet)
Exhibit 25 Data Center Market Size & Forecast in Other Cities by Power Capacity 2020−2029 (MW)
LIST OF TABLES
Table 1 List of Upcoming Data Center Projects
Table 2 Data Center Site Selection Criteria
Table 3 Overall Market Size & Forecast 2020−2029
Table 4 Market Size & Forecast by Colocation Service Type 2020-2029 ($ Million)
Table 5 Market Size & Forecast by Infrastructure 2020−2029 ($ Billion)
Table 6 Market Size & Forecast by IT Infrastructure 2020−2029 ($ Billion)
Table 7 Market Size & Forecast by Electrical Infrastructure 2020−2029 ($ Million)
Table 8 Market Size & Forecast by Mechanical Infrastructure 2020−2029 ($ Million)
Table 9 Market Size & Forecast by Cooling Systems 2020−2029 ($ Million)
Table 10 Market Size & Forecast by General Construction 2020−2029 ($ Million)
Table 11 Investment Market Size & Forecast by Tier Standards 2020−2029 ($ Million)
Table 12 Overall Market Size & Forecast in Tokyo 2020−2029
Table 13 Overall Market Size & Forecast in Osaka 2020−2029
Table 14 Overall Market Size & Forecast in Other Cities 2020−2029
1. Existing & Upcoming Third-Party Data Centers in Japan
1.1. Historical Market Scenario
1.2. 107+ Unique Data Center Properties
1.3. Data Center IT Load Capacity
1.4. Data Center White Floor Area
1.5. Existing Vs Upcoming Data Center Capacity by Cities
1.6. Locations Covered
1.6.1. Tokyo
1.6.2. Osaka
1.6.3. Other Cities
1.7. List of Upcoming Data Center Projects
2. Investment Opportunities in Japan
2.1. Microeconomic and Macroeconomic Factors for the Japanese Market
2.2. Investment Opportunities in Japan
2.3 Japan Global Innovation Index 2023
2.4 Digital Data in Japan
2.5. Investment by Area
2.6. Investment by Power Capacity
3. Data Center Colocation Market in Japan
3.1. Demand Across Several Industries in Japan
3.2 Colocation Services Market in the Japan
3.3. Retail vs Wholesale Data Center Colocation
3.4. Colocation Pricing (Quarter Rack, Half Rack, Full Rack) & Add-ons
4. Market Dynamics
4.1. Market Drivers
4.2. Market Trends
4.3. Market Restraints
5. Market Segmentation
5.1. IT Infrastructure: Market Size & Forecast
5.2. Electrical Infrastructure: Market Size & Forecast
5.3. Mechanical Infrastructure: Market Size & Forecast
5.4.
5.4. General Construction Services: Market Size & Forecast
6. Tier Standard Investment
6.1. Tier I & II
6.2. Tier III
6.3. Tier IV
7. Geography
7.1. Tokyo
7.2. Osaka
7.3. Other Cities
8. Key Market Participants
8.1. IT Infrastructure Providers
8.2. Construction Contractors
8.3. Support Infrastructure Providers
8.4. Key Data Center Investors
8.5. New Entrants
9. Appendix
9.1. Market Derivation
9.2 Site Selection Criteria
9.3. Quantitative Summary
Select a license type that suits your business needs
Single User Licence
- Report accessible by one user only
- Free 10% or 3 days of customization
- Free post-sale service assistance
- Continuous support through email
5 User Licence
- Report accessible by 5 users within the organization
- Free 15% or 4.5 days of customization
- Continuous support through email and telephone
- Free analyst hour
- Free Upgrade: If an updated report published within 180 days of purchase, you will get the revised report free of charge
Corporate Licence
- Free Datasheet worth $1500
- Report accessible by the entire organization
- Free 20% or 6 days of customization
- Free post-sale service assistance
- Continuous support through email and telephone
- Direct access to lead analysts
- Free analyst hour
- Free Upgrade: If an updated report published within 180 days of purchase, you will get the revised report free of charge
Datasheet Licence
- Report accessible by 1 user only
- Free 15% or 32 hours of customization
- Free post-sale service assistance
- Direct access to lead analysts
Frequently Asked Questions
What factors are driving the Japan data center market?
How much MW of power capacity will be added across Japan during 2024-2029?
What is the growth rate of the Japan data center market?
How many existing and upcoming data center facilities exist in Japan?
How big is the Japan data center market?
Who are the key investors in the Japan data center market?
How big is the Japan data center market?
What is the growth rate of the Japan data center market?
What factors are driving the Japan data center market?
How many existing and upcoming data center facilities exist in Japan?
How much MW of power capacity will be added across Japan during 2024-2029?
Who are the key investors in the Japan data center market?
How much MW of power capacity will be added across Japan during 2024-2029?
What is the growth rate of the Japan data center market?
How big is the Japan data center market?
What factors are driving the Japan data center market?
How many existing and upcoming data center facilities exist in Japan?
Who are the key investors in the Japan data center market?