Japan Data Center Power Market Expected to Reach USD 2.3 Billion by 2033 - IMARC Group

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

The Japan data center power market size was valued at USD 1.5 Billion in 2024, and it is expected to reach USD 2.3 Billion by 2033, exhibiting a growth rate (CAGR) of 6.6% from 2025 to 2033.

The inflating reliance on artificial intelligence, cloud computing, and digital transformation initiatives has significantly elevated the demand for data center power solutions in Japan. Government-backed policies promoting digitization and energy-efficient technologies to meet environmental goals are acting as growth-inducing factors. Additionally, the increasing adoption of hyperscale and colocation data centers to support businesses’ scalability requirements has emerged as a critical trend. For instance, advancements in liquid cooling systems and renewable energy integration are helping data center operators address Japan’s stringent energy regulations while reducing operational costs. Reflecting these trends, several notable developments have reshaped the data center power landscape in Tokyo. In July 2024, Tokyo Corporation unveiled CC3, a 40MW data center in the Shibaura-Shinagawa area. Spanning 7,500 sqm with a 2,700-rack capacity, CC3 prioritizes cloud interconnection and enterprise services, bolstering Japan's status as a regional digital hub.

Additionally, Keppel began constructing Keppel DC Tokyo 2, a 300,000-square-foot hyperscale data center, in November 2024 in Western Tokyo. This plant is predicted to be operational in 2027 and reflects Japan's priority on sustainability with its advanced liquid cooling and energy-efficient architecture. These undertakings emphasize the growing emphasis on integrating advanced technologies to complete developing demands. The exponential gain in digital services, which necessitates reliable and scalable data center infrastructure, is another noteworthy factor impelling the market. Providers are increasingly collaborating with investors to achieve this scale. In October 2024, Stack established its major data center, TOK01, in Tokyo’s Inzai district. Developed in partnership with Oaktree Capital and IPI Partners, this 36MW campus includes two 18MW facilities designed to deliver sustainable and scalable solutions. TOK01 exemplifies the strategic shift toward large-scale developments, ensuring that operators accommodate surging data volumes while addressing energy efficiency. These factors and advancements reflect the dynamic evolution of Japan’s data center power market, with a strong focus on meeting technological demands through innovative and sustainable practices.

Japan Data Center Power 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 extensive digital economy of the country is augmenting the market.

Kanto Region Data Center Power Market Trends:

The Kanto region impels Japan’s data center industry due to its role as the nation’s tech and business hub. The area is seeing an upsurge in hyperscale data centers powered by the Tokyo Electric Power Company’s renewable integration. Google’s recent expansion highlights the region’s growing data needs. Cooling innovations and green energy adoption are helping the area meet the rising demand for AI and edge computing solutions.

Kansai/Kinki Region Data Center Power Market Trends:

Osaka is emerging as a secondary hub for data centers, offering lower latency to western Japan. Microsoft Azure’s investment here underscores the region’s strategic importance. Kansai Electric Power’s renewable initiatives, particularly in wind energy, are addressing sustainability needs. The proximity to industrial zones like Kobe enhances data center connectivity, enabling industries to leverage real-time cloud solutions with reduced energy costs.

Central/Chubu Region Data Center Power Market Trends:

The Central/Chubu region benefits from its geographic advantage between Kanto and Kansai. Data centers here are powered by Chubu Electric’s robust grid and hydroelectric capacity. Toyota’s push towards digitalization has spurred hyperscale data center growth. The region’s focus on green energy ensures sustainable operations for growing AI and IoT applications. Chubu’s increasing investments in resilient infrastructure further support long-term data center expansion.

Kyushu-Okinawa Region Data Center Power Market Trends:

This region leverages its renewable energy potential to attract sustainable data centers. Kyushu Electric Power’s large-scale solar projects cater to the increasing energy demands. Google’s interest in the region reflects its strategic role in connecting Japan with Southeast Asia. Data centers here benefit from the region’s focus on solar and geothermal resources, meeting corporate carbon-neutral targets and driving innovation in energy-efficient digital infrastructure.

Tohoku Region Data Center Power Market Trends:

Tohoku’s frigid climate and disaster-resilient infrastructure make it ideal for energy-efficient data centers. Fujitsu’s expansion in the region highlights the advantages of low cooling costs. The restart of the Onagawa nuclear plant ensures a stable power supply, attracting data center projects. Local governments offer incentives to boost post-earthquake economic recovery, fostering a favorable environment for sustainable data center investments that align with Japan’s energy efficiency goals.

Chugoku Region Data Center Power Market Trends:

The Chugoku region’s growing data center market benefits from industrial demand in Hiroshima and surrounding areas. Renewable energy diversification by local providers complements stable energy solutions. Data centers support industries like shipbuilding and automotive, which rely heavily on digital innovations. The region’s focus on hybrid power systems enhances energy efficiency while ensuring operational reliability.

Hokkaido Region Data Center Power Market Trends:

Hokkaido’s natural cooling advantage and wind power potential are key drivers for data center growth. North Pacific Bank’s digital infrastructure investments showcase Hokkaido’s emergence as a sustainable data center hub. Its strategic location offers disaster resilience and supports low-energy cooling. Data centers here benefit from renewable resources, aligning with corporate carbon neutrality initiatives and fostering innovation in environmentally-conscious digital services.

Shikoku Region Data Center Power Market Trends:

Shikoku’s hydroelectric capacity positions it as an emerging region in the market. Tokushima’s renewable energy initiatives attract investments in IT infrastructure. Small-scale but highly efficient data centers cater to local and regional industries. Shikoku’s focus on sustainability and proximity to industrial zones create opportunities for clean energy-driven digital expansion. Local government incentives further bolster Shikoku’s appeal as a niche yet eco-friendly data center location.

Top Companies Leading in the Japan Data Center Power Industry

The report offers an in-depth analysis of Japan's data center power market's competitive landscape. It examines market structure, key player positioning, and successful strategies shaping the industry. A competitive dashboard and company evaluation quadrant provide insights into performance metrics. Additionally, the report includes detailed profiles of major companies operating in Japan's data center power sector, highlighting their strategies, innovations, and contributions to market growth.

Japan Data Center Power Market Segmentation Coverage

• On the basis of the solution type, the market has been bifurcated into power distribution and measurement (intelligent PDUs, non-intelligent PDUs, and monitoring software), power backup (UPS device and generators), and cabling infrastructure (transfer switches and switchgear). These solutions are essential for ensuring seamless operations and minimizing downtime in modern data center power systems.
• Based on the service type, the market is categorized into system integration, training and consulting, and support and maintenance. These services support and ensure optimized performance and reliability for data center power solutions across diverse applications.
• On the basis of the size, the market has been divided into mid-size data center, enterprise data center, and large data center. Data center power solutions are tailored to meet the unique demands of mid-size, enterprise, and large-scale facilities, ensuring scalability, efficiency, and resilience for critical workloads.
• Based on the vertical, the market is categorized into BFSI, telecommunication and IT, energy, manufacturing, and others. Data center power systems are customized to support the high-performance needs of industries, thereby driving operational excellence and sustainability.
   

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