Japan Data Center Market Investment to Hit Valuation of $13.35 Billion by 2030
"Japan Data Center Market Research Report by Arizton"
Get Insights on 112 Existing Data Centers and 47 Upcoming Facilities across Japan.
According to Arizton's latest research report, the Japan data center market is growing at a CAGR of 5.06% during the 2024-2030.
Report Summary
Market Size - Investment (2030): $13.35 Billion
Market Size – Area (2030): 864 Thousand Sq. ft.
Market Size – Power Capacity (2030): 323 MW
CAGR – Investment (2024-2030): 5.06%
Colocation Market Size (2030): $3.93 Billion
Historic Year: 2021-2023
Base Year: 2024
Forecast Year: 2025-2030
Japan Data Center Market Overview
Japan is becoming a leading hub for data center development in Asia, fueled by rising digitalization, government initiatives, and strong internet penetration. The country's advanced regulatory framework and robust infrastructure, including excellent inland and submarine cable connectivity, make it an attractive destination for data center investments.
Significant investments are being driven by both global and local players, with a notable presence of hyperscale operators. The Japan Data Center Council, established by the Nippon Data Center Association, works to improve Japan's IT infrastructure and enhance global connectivity. Major data center operators like NTT Communications, Equinix, Colt Data Centre Services, and Fujitsu are expanding their facilities across key cities like Tokyo and Osaka. Additionally, leading cloud providers such as Amazon Web Services, Google, and Microsoft have established cloud regions in these cities. Despite high construction costs, which range between $12.5 million to $13.5 million per MW, Japan's data center market is growing rapidly. Tokyo and Osaka, both smart cities, are seeing increasing demand for edge and modular data centers to support faster data processing. Recent expansions include Colt's Inzai 4 facility, STACK Infrastructure's TOK01 center, and SoftBank's upcoming AI-focused data center in Osaka. These developments position Japan as a critical player in the global digital economy.
Growth of Third-Party Data Center Facilities in Japan
Japan's data center market is experiencing gradual growth, with over 110 existing colocation data centers spread across the country, most of which are concentrated in Tokyo. The colocation sector is thriving, with the occupancy rate in these facilities ranging between 85% and 90%. Both Tokyo and Osaka have particularly high absorption rates, and edge deployments are becoming more common, especially with the expansion of 5G connectivity.
The Japanese colocation market is dominated by major operators such as Equinix, NTT Communications, MC Digital Realty, AirTrunk, Colt Data Centre Services, and Fujitsu. Tokyo remains the central hub due to its dense business activities and advanced technological infrastructure. New entrants, including Vantage Data Centers, Empyrion Digital, ST Telemedia Global Data Centres, and others, are also making their mark in the market, further diversifying the landscape.
The rise of self-built hyperscale data centers by global giants such as Google, Microsoft, and Amazon Web Services (AWS) is reshaping the Japanese market. These hyperscale operators are shifting their workloads to their own facilities, potentially impacting the colocation market by reducing revenue opportunities for colocation providers.
In 2024, retail colocation accounted for the largest portion of the market share, while wholesale colocation is expected to gain ground in the coming years. Leading colocation operators like Equinix and Digital Realty continue to generate significant revenue, with both companies seeing strong performance in the Tokyo and Osaka markets.
Tokyo as a Strategic Data Center Hub
Tokyo, one of the most prominent cities in Japan and globally, serves as a strategic hub for businesses, offering a robust infrastructure that includes advanced connectivity, secure facilities, and government policies that support digital innovation. The city hosts numerous ICT companies, including Hewlett Packard Enterprise, IBM, Lenovo, and NetApp, and is a leading startup ecosystem, making it a focal point for data center investments in Japan.
Data Center Landscape in Tokyo
As of December 2024, Tokyo boasts around 67 existing data center facilities. It is home to local and global operators such as Equinix, AT TOKYO, Telehouse, NTT Communications, MC Digital Realty, Colt Data Centre Services, and AirTrunk. Major cloud providers, including Amazon Web Services, Microsoft, Alibaba Cloud, and Oracle, have dedicated cloud regions in the city, reinforcing Tokyo's importance in the global cloud infrastructure landscape.
Advanced Connectivity and Infrastructure
Tokyo offers one of the world's most advanced telecommunications networks, with high-speed internet and extensive fiber-optic connectivity. It serves as a key landing point for trans-Pacific submarine cables, ensuring low-latency, high-reliability global connections.
Recent Developments
Several new data center projects are underway in Tokyo. Notable developments include Colt Data Centre Services' Inzai 4 facility, Keppel Data Centres' AI-ready hyperscale data center, and STACK Infrastructure's TOK01 in Greater Tokyo's Inzai district. In addition, Empyrion Digital, AT TOKYO, and Ada Infrastructure are contributing to the city's growing data center landscape, further positioning Tokyo as a leading destination for high-performance computing (HPC) and AI workloads.
Why Should You Buy this Research?
This research provides an extensive overview of the Japan data center market, offering key insights into various critical aspects, including market size across investment, area, power capacity, and revenue within the colocation sector. It assesses the data center investment landscape in Japan, focusing on different operators, such as colocation, hyperscale, and enterprise operators. With detailed data on investments in terms of square footage and power capacity (MW) across cities in Japan, the report offers valuable market intelligence. It also presents a comprehensive study of the existing market landscape, along with in-depth analysis and predictions regarding the market size during the forecast period.
The research highlights the current and future state of Japan's data center infrastructure, including a snapshot of both existing and upcoming data center facilities. The report covers 112 existing facilities and 47 upcoming facilities across 18+ locations, providing a detailed comparison of existing versus upcoming data center areas and IT load capacities. Furthermore, it delves into the colocation market, offering revenue forecasts from 2021 to 2030, including separate insights into retail colocation revenue and pricing models for both retail and wholesale colocation.
In addition, this research analyzes investments in various sectors of the data center market, such as IT, power, cooling, and general construction, with sizing and future forecasts. It provides a clear picture of the latest market trends, growth rates, potential opportunities, growth challenges, and future prospects. The report also offers a business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the market. With a transparent research methodology, this study meticulously evaluates both the demand and supply dynamics within the Japan data center landscape, making it an essential resource for stakeholders seeking comprehensive market insights and strategic planning.
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
The Report Includes the Investment in the Following Areas:
IT Infrastructure
Server Infrastructure
Storage Infrastructure
Network Infrastructure
Electrical Infrastructure
UPS Systems
Generators
Transfer Switches & Switchgears
PDUs
Other Electrical Infrastructure
Mechanical Infrastructure
Cooling Systems
Racks
Other Mechanical Infrastructure
Cooling Systems
CRAC and CRAH Units
Chillers Units
Cooling Towers, Condensers and Dry Coolers
Other Cooling Units
General Construction
Core & Shell Development
Installation & Commissioning Services
Engineering & Building Design
Fire Detection & Suppression
Physical Security
Data Center Infrastructure Management (DCIM)
Tier Standards
Tier I & Tier II
Tier III
Tier IV
Geography
Tokyo
Osaka
Other Cities
Vendor Landscape
IT Infrastructure Providers
Arista Networks
Atos
Broadcom
Cisco
Dell Technologies
Fujitsu
Hewlett Packard Enterprise
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
Rehlko (Kohler)
Legrand
Mitsubishi Electric
Rittal
Rolls Royce
Schneider Electric
Siemens
STULZ
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)
STACK Infrastructure
Telehouse
Tencent Cloud
TIS INTEC Group
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
Yondr
Key Questions Answered in the Report:
How big is the Japan data center market?
How much MW of power capacity will be added across Japan during 2025-2030?
What factors are driving the Japan data center market?
What is the growth rate of the Japan data center market?
Which cities are included in the Japan data center market report?
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