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Japan Data Center Market - Investment Analysis & Growth Opportunities 2026-2031

Publisher Arizton Advisory and Intelligence
Published Jan 13, 2026
Length 149 Pages
SKU # ARZ20708543

Description

The Japan data center market is expected to grow at a CAGR of 20.42% from 2025 to 2031.

JAPAN DATA CENTER MARKET - KEY HIGHLIGHTS
  • Japan has about 119 operational colocation data centers. Most colocation data centers are being developed according to Tier III standards.
  • Tokyo is the top data center destination in the country. It continues to be Japan leading hub for data center expansion, marked by a concentrated growth in advanced facilities, hyperscale data centers, and dedicated cloud regions. As of June 2025, there are around 74 existing and 26 upcoming data centers in Tokyo.
  • After Tokyo and Osaka, the demand for data center investments in locations such as Hokkaido, Kyushu, Nagoya, and Yokohama will increase. These regions offer key advantages, including land availability, government support, and lower land and construction costs, making them attractive destinations for data center investors in the coming years
  • The trend of liquid cooling in Japanese data centers is growing due to the increasing demand for High-Performance Computing (HPC), AI workloads, and energy efficiency. Liquid cooling is more efficient than air cooling, as liquids can absorb and transfer heat more effectively than air.
  • In September 2025, Preferred Networks (PFN), Internet Initiative Japan (IIJ), and the Japan Advanced Institute of Science and Technology (JAIST) began pilot testing liquid-cooled high-density AI servers and hybrid-cooled data centers at IIJ’s Matsue Data Center Park (DCP) and JAIST’s Ishikawa campus; the main objective was to develop an ultra-efficient AI computing infrastructure.
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
  • 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
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.
  • Data center 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 industry analysis, and insightful predictions about the Japan data center market size during the forecast period.
  • Snapshot of existing and upcoming third-party data center facilities in Japan
  • Facilities Covered (Existing): 119
  • Facilities Identified (Upcoming): 49
  • Coverage: 17+ Locations
  • Existing vs. Upcoming (Data Center Area)
  • Existing vs. Upcoming (IT Load Capacity)
  • Data center colocation market in Japan
  • Colocation Market Revenue & Forecast (2022-2031)
  • Retail & Wholesale Colocation Revenue (2022-2031)
  • Retail & Wholesale Colocation Pricing
  • Japan data center landscape 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 market.
JAPAN DATA CENTER MARKET VENDOR LANDSCAPE
  • The Japan data center market has the presence of several major data center operators such as AT TOKYO, AirTrunk, Colt Data Centre Services, Digital Edge, Equinix, Fujitsu, Goodman, IDC Frontier, Internet Initiative Japan (IIJ), MC Digital Realty, NTT Communications, STACK Infrastructure, and Telehouse (KDDI). Some of the data center operators have expanded their facilities across the country, with new development initiatives expected to become operational during the forecast period.
  • The country accounts for the presence of some of the major cloud operators, such as Amazon Web Services, Alibaba, Google, Microsoft, Oracle, and Tencent Cloud, with dedicated cloud region(s). Their cloud regions are spread across Tokyo and Osaka.
  • Several local Japanese companies have formed joint ventures with global companies to invest in cloud computing, AI infrastructure, and sovereign cloud solutions. The goal of these collaborations is to accelerate digital transformation while ensuring data sovereignty, regulatory compliance, and the development of advanced technologies within the country.
  • For instance, in October 2025, SoftBank announced a joint venture with Oracle to provide secure, compliant, and scalable sovereign cloud and AI services for organizations across Japan. Using Oracle Alloy, SoftBank will build an advanced cloud infrastructure in the data centers located in eastern and western Japan. All data and systems will be fully managed and operated within the country. The service is slated for launch in the eastern and western Japan data centers in April 2026 and October 2026, respectively.
  • The Japan data center market is increasingly prioritizing sustainability, with many operators investing in energy-efficient infrastructure and renewable energy sources. For instance, In October 2025, Microsoft announced the signing of a Power Purchase Agreement (PPA) with Shizen Energy, a Japanese energy firm that offers around 100 MW of solar power in Japan. Additionally, the energy will be supplied from four solar projects located in Kyushu and Chugoku. One of the projects in Kyushu has become operational, while the rest three are currently under construction.
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
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
  • NVIDIA
  • Oracle
  • Pure Storage
Data Center Construction Contractors & Sub-Contractors
  • AECOM
  • Arup
  • Daiwa House Industry
  • Fuji Furukawa Engineering & Construction
  • HASEKO Corporation
  • Hibiya Engineering
  • ISG
  • Kajima Corporation
  • Keihanshin Building
  • Linesight
  • Marcai Design
  • Meiho Facility Works
  • NEC Facilities
  • Nikken Sekkei
  • Nishimatsu Construction
  • NTT Facilities
  • Obayashi Corporation
  • Shinryo Corporation
  • Taisei Corporation
  • Takenaka Corporation
  • Toda Corporation
Support Infrastructure Providers
  • 3M
  • ABB
  • Alfa Laval
  • Caterpillar
  • Cummins
  • Delta Electronics
  • Eaton
  • Fuji Electric
  • HITEC Power Protection
  • Johnson Controls
  • Kawasaki Heavy Industries
  • Legrand
  • Mitsubishi Electric
  • Rehlko
  • 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
  • MC Digital Realty
  • Microsoft
  • NTT Communications
  • SCSK Corporation (NETXDC)
  • STACK Infrastructure
  • Telehouse
  • Tencent Cloud
  • TIS INTEC Group
New Entrants
  • Asia Pacific Land (APL)
  • Ada Infrastructure
  • CapitaLand
  • CyrusOne
  • DayOne
  • EdgeConneX
  • Empyrion Digital
  • ESR
  • FLOW Digital Infrastructure
  • Keppel Data Centres
  • NEXTDC
  • Princeton Digital Group
  • SC Zeus Data Centers
  • ST Telemedia Global Data Centres
  • Vantage Data Centers
  • Yondr Group
KEY QUESTIONS ANSWERED:

1. How big is the Japan data center market?

2. What is the growth rate of the Japan data center market?

3. How much MW of power capacity will be added across Japan during 2026-2031?

4. What factors are driving the Japan data center market?

5. Which all geographies are included in Japan center market report?

Table of Contents

149 Pages
1. CHAPTER 1: EXISTING & UPCOMING THIRD-PARTY DATA CENTERS IN JAPAN
Historical Market Scenario
Data Center Snapshot
Data Center Snapshot By Cities
Existing & Upcoming Data Center Supply in Japan
List of Upcoming Data Center Projects in Japan
2. CHAPTER 2: INVESTMENT OPPORTUNITIES IN JAPAN
Microeconomic & Macroeconomic Factors for Japan Market
Impact of AI on Data Center Industry in Japan
Investment Opportunities in the Japan
Digital Data in Japan
Investment by Area
Investment by power Capacity
3. CHAPTER 3: DATA CENTER COLOCATION MARKET IN JAPAN
Colocation Services Market in the Japan
Retail vs Wholesale Data Center Colocation
Demand Across Several Industries in the Japan
Industry Demand Share
Colocation Pricing (Quarter Rack, Half Rack, Full Rack) & Add-ons
4. CHAPTER 4: MARKET DYNAMICS
Market Enablers
Market Trends
Market Restraints
5. CHAPTER 5: MARKET SEGMENTATION
IT Infrastructure: Market Size & Forecast
Electrical Infrastructure: Market Size & Forecast
Mechanical Infrastructure: Market Size & Forecast
General Construction Services: Market Size & Forecast
6. CHAPTER 6: TIER STANDARDS INVESTMENT
Tier I & II
Tier III
Tier IV
7. CHAPTER 7: GEOGRAPHY SEGMENTATION
Tokyo
Osaka
Other Cities
8. CHAPTER 8: KEY MARKET PARTICIPANTS
IT Infrastructure Providers
Construction Contractors & Sub-Contractors
Support Infrastructure Providers
Data Center Investors
New Entrants
9. CHAPTER 9: APPENDIX
Market Derivation
Site Selection Criteria
Quantitative Summary

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