Japan Data Center Market Expected to Reach 2.12 GW by 2033 - IMARC Group

January 17, 2025 | Technology & Media

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

The Japan data center market size reached 1.37 GW in 2024, and it is expected to reach 2.12 GW by 2033, exhibiting a growth rate (CAGR) of 4.99% from 2025 to 2033.

Japan Data Center Market Statistics

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The growth of the 5G network in Japan is significantly fueling the growth of the market. By March 2024, Japan had more than 90 million 5G subscriptions. During the same period, the prefectures of Kanagawa and Osaka also accounted for the highest 5G coverage rate in the country, at about 99.9%. With the 5G offering faster speeds, lower latency, and improved connectivity, there is a growing need for local data centers to manage the surge in data traffic and support real-time applications. Technologies like edge computing, the Internet of Things (IoT), autonomous vehicles, and smart cities are pushing for more distributed and high-performance data centers. As telecom companies and businesses invest heavily in the necessary infrastructure, Japan is becoming a central hub for connectivity, which further drives the demand for scalable and low-latency data solutions.

Additionally, prominent players in Japan are focusing on the development of large data centers to meet the growing need for flexible infrastructure. New facilities are being built in key areas like Greater Tokyo, boosting capacity and helping drive the country’s digital progress. For instance, in October 2024, STACK Infrastructure, a data center operator, completed its first data center on its new 36MW flagship Tokyo campus. Besides this, the rapid growth of the e-commerce sector in Japan is driving the expansion of the country’s data center market. According to a survey conducted in 2024, most of the individuals in Japan shopped online at least once a month. While more than 28% of respondents utilized online buying and e-commerce websites twice or three times per month. At the same time, 2.4% adopted these platforms every day. As online shopping and digital transactions surge, businesses need reliable infrastructure to handle large amounts of traffic. Data centers are essential for storing, processing, and safeguarding this information, creating a growing need for modern facilities.

Japan Data Center Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include Kanto region, Kinki region, Central/Chubu region, Kyushu-Okinawa region, Tohoku region, Chugoku region, Hokkaido region, and Shikoku region. Japan is prone to natural disasters like earthquakes and typhoons, which makes businesses need reliable data centers to keep their data safe and ensure they can keep working even during disasters, further driving the growth of the market across the region.

Kanto Region Data Center Market Trends:

Tokyo is the financial hub in the Kanto region. The high demand for cloud services and e-commerce solutions across Tokyo is stimulating market growth. Additionally, the rising digital transformation among large enterprises continues to drive the data center market growth in Kanto.

Kinki Region Data Center Market Trends:

The rapid digital transportation, along with the proliferation of IoT devices, is driving the market growth in the Kinki region. Various cities, like Osaka, have a robust infrastructure, which makes it suitable for data centers. Besides this, key tech companies are launching data centers across the region, which is further acting as another growth-inducing factor. For instance, Google announced a new data center in Osaka in March 2023.

Central/Chubu Region Data Center Market Trends:

The growing automotive and manufacturing sector in Nagoya is acting as a significant growth-inducing factor in the Central region. Additionally, key car manufacturers and suppliers are focusing on data centers that can handle manufacturing data and AI processing. Besides this, Nagoya's lower land costs have attracted major data center operators like Google, which is further supporting the growth of the market in the Central/Chubu region.

Kyushu-Okinawa Region Data Center Market Trends:

The expanding renewable energy sector across the Kyushu-Okinawa region is stimulating the market growth. Also, Kyushu's vast geothermal energy resources offer cost-effective power solutions, attracting data center investments. Besides this, the local government incentives and rising cloud adoption in regional industries further bolster market growth.

Tohoku Region Data Center Market Trends:

The increasing shift towards renewable energy and low-electricity cost is driving the market growth in the Tohoku region. The cold climate also reduces cooling costs, which further makes it an attractive destination for data center operations. Besides this, Fujitsu's data center in Miyagi benefits from stable electricity across the region.

Chugoku Region Data Center Market Trends:

The growing digitalization across various industries is driving the growth of the data center market in the Chugoku region. Various businesses in sectors like manufacturing are adopting advanced technologies like IoT, which further propels the demand for reliable data storage. Also, a manufacturing company in Okayama Prefecture has started using cloud-based solutions to improve production efficiency, which further drives the market growth.

Hokkaido Region Data Center Market Trends:

There has been an increasing adoption of renewable energy resources like wind and solar across the Hokkaido region. This surge provides a sustainable and cost-effective energy supply for data center operations. The focus attracts businesses with green initiatives, further supporting the market growth. Besides this, governments across the region are promoting the construction of data centers. In May 2023, the government planned to offer subsidies to encourage the construction of data centers across the Hokkaido region.

Shikoku Region Data Center Market Trends:

There has been abundant hydroelectric power across the Shikoku region, which provides a stable energy supply for numerous data centers. Highreso Kagawa has opened a data center in Kagawa Prefecture, Japan, which uses the region's green energy to reduce carbon emissions and operational costs.

Top Companies Leading in the Japan Data Center Industry

The competitive landscape of the Japan data center market is marked by prominent organizations that dominate the region. Key factors include the availability of robust telecommunications infrastructure, renewable energy resources, and government support for digital transformation through subsidies and regulatory reforms.

Japan Data Center Market Segmentation Coverage

On the basis of the component, the market has been bifurcated into solution and service. Data center solutions are technologies and techniques that are customized to meet data storage and management requirements. Furthermore, data center services ensure the proper usage and maintenance of data center infrastructure.
Based on the type, the market has been bifurcated into colocation, hyperscale, edge, and others. Colocation refers to a service where businesses rent space within a third-party data center to house their servers and IT infrastructure. The data center provider offers basic facilities like power and cooling. Moreover, hyperscale data centers help to support growing IT workloads. They cater primarily to cloud service providers and large enterprises.
On the basis of the enterprise size, the market has been bifurcated into large enterprises, and small and medium enterprises. Large enterprises require data centers with high-performance infrastructure to support their complex IT needs. Moreover, SMEs prioritize cost-effectiveness and simplicity in their data center solutions.
Based on the end user, the market has been bifurcated into BFSI, IT and telecom, government, energy and utilities, and others. The BFSI sector requires data centers to safeguard the storage and transfer of large amounts of financial data. Furthermore, data centers provide networking, application hosting, and cloud computing services to the IT and telecom sectors, further driving the segment's growth. Apart from this, governments use data centers to support public services and governance.

Report Features	Details
Market Size in 2024	1.37 GW
Market Forecast in 2033	2.12 GW
Market Growth Rate 2025-2033	4.99%
Units	GW
Scope of the Report	Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment: Component Type Enterprise Size End User Region
Components Covered	Solution, Service
Types Covered	Colocation, Hyperscale, Edge, Others
Enterprise Sizes Covered	Large Enterprises, Small and Medium Enterprises
End Users Covered	BFSI, IT And Telecom, Government, Energy and Utilities, Others
Regions Covered	Kanto Region, Kinki Region, Central/ Chubu Region, Kyushu-Okinawa Region, Tohoku Region, Chugoku Region, Hokkaido Region, Shikoku Region
Customization Scope	10% Free Customization
Post-Sale Analyst Support	10-12 Weeks
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

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Japan Data Center Market Expected to Reach 2.12 GW by 2033 - IMARC Group

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