Japan Data Center Cooling Market Expected to Reach USD 6.9 Billion by 2033 - IMARC Group

Japan Data Center Cooling Market Statistics, Outlook and Regional Analysis 2025-2033

The Japan data center cooling market size was valued at USD 2.5 Billion in 2024, and it is expected to reach USD 6.9 Billion by 2033, exhibiting a growth rate (CAGR) of 11.6% from 2025 to 2033.

There is an increasing demand for sustainable and effective cooling solutions in Japan's data center cooling industry driven by modern technologies such as artificial intelligence and cloud computing. Furthermore, the country's responsibility to achieve carbon neutrality by 2050 has pushed data center operators to incorporate energy-efficient cooling technologies to align with sustainability goals. For instance, liquid cooling technologies, which offer enhanced energy efficiency and support high-performance workloads, are becoming increasingly popular as operators seek to reduce power consumption and improve reliability in hyperscale and enterprise facilities. In November 2024, NTT launched liquid cooling trials at a 74kW verification facility in Noda City, Japan. They include two-phase direct-to-chip and immersion cooling systems aimed at optimizing cooling efficiency while addressing equipment interoperability challenges.

In the same way, Keppel and Mitsui Fudosan unveiled Keppel DC Tokyo 2 in November 2024. This 200,000 sq ft AI-ready hyperscale facility is designed to support liquid cooling and integrates energy-efficient systems to cater to the growing demand for sustainable data centers in Japan. These developments highlight the increasing emphasis on deploying cutting-edge cooling solutions tailored to meet the unique requirements of modern data centers. Another significant factor driving the adoption of advanced cooling technologies in Japan's data center market is the increasing focus on connectivity and scalability. As businesses prioritize robust network infrastructure and operational flexibility, data centers are evolving to serve as connectivity hubs for enterprises. For example, in July 2024, Tokyo launched Chuo Center (CC3), a 30MW facility in Tokyo equipped with advanced cooling systems capable of supporting 2,000 racks. Designed as a connectivity hub, CC3 underscores the importance of sustainable operations and energy-efficient cooling technologies to cater to the needs of cloud and enterprise clients.

Japan Data Center Cooling Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include Kanto region, Kansai/Kinki region, Central/Chubu region, Kyushu-Okinawa region, Tohoku region, Chugoku region, Hokkaido region, and Shikoku region. The increasing demand for data centers across these regions, driven by digital transformation and high-tech industries, boosts the need for this technique to maintain operational efficiency. 

Kanto Region Data Center Cooling Market Trends:

The Kanto region, including Tokyo, leads Japan in data center development due to its dense urbanization. With hyperscale facilities like Equinix TY series, the demand for advanced liquid cooling solutions is rising to optimize limited space and high-density workloads. Energy-efficient systems dominate, driven by Tokyo's strict carbon neutrality goals. Businesses in Kanto are incorporating direct-to-chip cooling. For instance, immersion cooling technology is used at NEC Corporation's Tokyo facility to meet energy and performance requirements.

Kansai/Kinki Region Data Center Cooling Market Trends:

Osaka, a key hub in the Kansai/Kinki region, is witnessing a surge in colocation services. Data centers prioritize air economization systems due to the moderate climate. Recent developments include renewable energy-powered cooling, such as NTT's Osaka 7 Data Center adopting water-side economizers to minimize energy consumption. This approach balances efficiency and cost, catering to enterprises migrating to the Kansai/Kinki region for disaster recovery solutions due to its seismic stability compared to Kanto.

Central/Chubu Region Data Center Cooling Market Trends:

The Chubu region is becoming a manufacturing and automotive data center, which is contributing to the market growth. Cooling alternatives such as modular evaporative systems are gaining attraction, thereby addressing changing demands and high energy prices. Toyota’s data facility near Nagoya integrates geothermal cooling, leveraging the region’s natural resources to maintain operational efficiency. This aligns with Chubu’s green initiatives to support sustainable industrial growth while accommodating the increasing computing power required for automotive R&D and IoT applications.

Kyushu-Okinawa Region Data Center Cooling Market Trends:

Kyushu, including Fukuoka, capitalizes on renewable energy for cooling, particularly leveraging geothermal and hydro resources. Edge data centers cater to regional businesses, using compact evaporative cooling systems to suit smaller facilities. Companies like Kyocera in Fukuoka are pioneering hybrid cooling setups combining natural ventilation and chilled water systems. Kyushu’s initiatives align with national carbon neutrality targets, making it a model for integrating green technologies in cooling small to mid-sized data centers.

Tohoku Region Data Center Cooling Market Trends:

The Tohoku region, including Sendai, emphasizes free cooling methods due to its cooler climate. Large-scale facilities like the Fujitsu Akita Data Center exploit the natural environment to reduce reliance on mechanical cooling. Snow storage systems, unique to Tohoku, are being piloted to provide year-round cooling. These innovative practices, combined with solar energy, showcase Tohoku's commitment to sustainable cooling strategies while catering to expanding government and research data center demands.

Chugoku Region Data Center Cooling Market Trends:

In the Chugoku region, Hiroshima leads in data center innovations with a focus on modular cooling systems for quick scalability. Edge facilities prioritize direct air cooling due to the mild climate, reducing operational costs for regional industries. Hiroshima’s Smart City initiative has driven increased use of AI-based cooling management, with data centers like the Hiroshima Information Plaza integrating predictive analytics to optimize energy consumption and enhance cooling system longevity.

Hokkaido Region Data Center Cooling Market Trends:

Hokkaido’s cold climate makes it a prime location for natural cooling methods. Facilities like the Sapporo North Data Center leverage air-side economization for year-round efficiency, significantly cutting operational costs. The region attracts players seeking low-carbon cooling solutions. For instance, Advania established partnerships with other companies to deploy advanced airflow cooling systems in Hokkaido. This trend highlights the region’s potential for hosting sustainable and low-energy data infrastructure.

Shikoku Region Data Center Cooling Market Trends:

Shikoku, with cities like Matsuyama, focuses on water-cooled systems, utilizing its abundant freshwater resources. Local data centers adopt submerged liquid cooling for space-constrained installations supporting regional logistics and e-commerce platforms. For example, Matsuyama’s Green Data Facility incorporates hybrid cooling with heat recovery systems for neighboring industries. Shikoku’s approach blends efficiency with sustainability, enhancing its appeal as a regional hub for smaller-scale and energy-conscious data center operations.

Top Companies Leading in the Japan Data Center Cooling Industry

Some of the leading data center cooling market companies include Alfa Laval Co. Ltd., Mitsubishi Heavy Industries Ltd., Munters, and Schneider Electric SE., among many others. In July 2024, NTT Facilities unveiled its next-generation data center project featuring liquid-cooling and pre-cool coil wall technology. The system reduces cooling power by 50%, supports carbon neutrality, and integrates heat reuse for local community benefits.

Japan Data Center Cooling Market Segmentation Coverage

• On the basis of the solution, the market has been bifurcated into air conditioning, chilling units, cooling towers, economizer systems, liquid cooling systems, control systems, and others. These solutions are essential components of data center cooling, as they assist in ensuring optimal temperatures, efficient energy use, and effective heat dissipation across complex IT infrastructures.
• Based on the services, the market is categorized into consulting, installation and deployment, and maintenance and support. These services are fundamental for data center cooling systems, as they ensure optimal design, seamless implementation, and ongoing efficiency through continuous monitoring.
• On the basis of the type of cooling, the market has been divided into room-based cooling, row-based cooling, and rack-based cooling. These types of cooling solutions are designed to target specific cooling requirements in data centers, providing efficient heat dissipation at different levels.
• Based on cooling technology, the market is categorized into liquid-based cooling and air-based cooling. Liquid cooling offers superior heat transfer capabilities. In contrast, air-based systems are more common due to their lower upfront cost and ease of integration.
• On the basis of the type of data center, the market has been divided into mid-sized data centers, enterprise data centers, and large data centers. Cooling solutions vary in scale, with customized systems designed to meet the distinct needs of each. This helps in balancing efficiency, capacity, and scalability for optimal heat management.
• Based on the vertical, the market is categorized into BFSI, IT and telecom, research and educational institutes, government and defense, retail, energy, healthcare, and others. These industries rely on advanced data center cooling solutions to ensure uninterrupted service, maintain operational efficiency, and protect sensitive infrastructure from overheating.
   

Browse IMARC Related Reports on Data Center Cooling Market:

• Data Center Cooling Market Report
   
• United States Data Center Cooling Market Report
   
• India Data Center Cooling Market Report
   
• UK Data Center Cooling Market Report
   
• Australia Data Center Cooling Market Report