Japan Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Japan Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Japan Data Center Market size is expected to grow from USD 19.09 billion in 2023 to USD 25.56 billion by 2028, at a CAGR of 6.01% during the forecast period (2023-2028).

Key Highlights

  • IT Load Capacity: The IT load capacity of the Japanese data center market may grow steadily and reach 4446.5 MW by 2029.
  • Raised Floor Space: The country's total raised floor area is expected to reach 10.2 million sq. ft by 2029.
  • Installed Racks: The country's total number of installed racks is expected to reach 512,270 units by 2029. Tokyo is expected to house the maximum number of racks by 2029.
  • DC Facilities: Japan is expected to notice investments in green DC R&D, such as the zero-emission DC plan of Ishikari City, Hokkaido, which leverages the cold climate and proximity to renewable energy, thus offering a huge potential for data growth and government incentives.
  • Leading Market Player: AirTrunk Operating Pty Ltd holds the highest share of 15.4% in the data center market compared to its competitors. The company currently operates at an IT load capacity of 185 MW, which is expected to increase during the forecast period.

Japan Data Center Market Trends

Tier 3 is the largest Tier Type

  • Tier 3 data centers are mostly preferred by SMBs (small and medium businesses) for their far superior redundancy protection offerings. There is a significant jump in uptime from tier 2, with tier 3 offering annual uptime of 99.982%. The segment is expected to grow from 1,309.25 MW in 2022 to 1,905.47 MW by 2029, registering a CAGR of 5.51%. These data centers are mainly opted for by large companies.
  • Tier 4 facilities are the next most preferred data centers by large businesses due to their performance, lower downtime, and 99.99% uptime. However, the majority of facilities still prefer tier 3 data centers due to their long-term financial and operational sustainability. Tier 3 is the most widely adopted standard across the industry. However, the growth rate for tier 4 facilities is expected to be the largest.
  • Tier 1 & 2 data centers are the least preferred due to their higher downtime durations and low redundancies, but start-up companies usually prefer these data centers. However, in Japan, start-up companies also prefer tier 3 data center facilities. Currently, in Japan, there are no facilities certified with Tier 1 and Tier 2, and this trend is expected to continue during the forecast period.

Japan Data Center Industry Overview

The Japan Data Center Market is moderately consolidated, with the top five companies occupying 55.68%. The major players in this market are Colt Technology Services, Digital Realty Trust, Inc., Equinix, Inc., IDC Frontier Inc. (SoftBank Group) and NEC Corporation (sorted alphabetically).

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3.1 Study Assumptions & Market Definition
3.2 Scope of the Study
3.3 Research Methodology
4.1 IT Load Capacity
4.2 Raised Floor Space
4.3 Colocation Revenue
4.4 Installed Racks
4.5 Rack Space Utilization
4.6 Submarine Cable
5.1 Smartphone Users
5.2 Data Traffic Per Smartphone
5.3 Mobile Data Speed
5.4 Broadband Data Speed
5.5 Fiber Connectivity Network
5.6 Regulatory Framework
5.7 Value Chain & Distribution Channel Analysis
6.1 Hotspot
6.1.1 Osaka
6.1.2 Tokyo
6.1.3 Rest of Japan
6.2 Data Center Size
6.2.1 Large
6.2.2 Massive
6.2.3 Medium
6.2.4 Mega
6.2.5 Small
6.3 Tier Type
6.3.1 Tier 1 and 2
6.3.2 Tier 3
6.3.3 Tier 4
6.4 Absorption
6.4.1 Non-Utilized
6.4.2 Utilized By Colocation Type Hyperscale Retail Wholesale By End User BFSI Cloud E-Commerce Government Manufacturing Media & Entertainment Telecom Other End User
7.1 Market Share Analysis
7.2 Company Landscape
7.3 Company Profiles
7.3.1 AirTrunk Operating Pty Ltd.
7.3.2 Arteria Networks Corporation
7.3.3 Colt Technology Services
7.3.4 Digital Edge (Singapore) Holdings Pte Ltd.
7.3.5 Digital Realty Trust, Inc.
7.3.6 Equinix, Inc.
7.3.7 IDC Frontier Inc. (SoftBank Group)
7.3.8 NEC Corporation
7.3.9 netXDC (SCSK Corporation)
7.3.10 NTT Ltd.
7.3.11 Telehouse (KDDI Corporation)
7.3.12 Zenlayer Inc
9.1 Global Overview
9.1.1 Overview
9.1.2 Porter's Five Forces Framework
9.1.3 Global Value Chain Analysis
9.1.4 Global Market Size and DROs
9.2 Sources & References
9.3 List of Tables & Figures
9.4 Primary Insights
9.5 Data Pack
9.6 Glossary of Terms

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