Japan Artificial Intelligence (AI) Optimised Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Japan Artificial Intelligence Optimised Data Center Market Report is Segmented by Data Center Type (CSP Data Centers, Colocation Data Centers, Others (Enterprise and Edge)), by Component (Hardware, Software Technology, Services - (Managed Services, Professional Services, Etc. ). The Report Offers the Market Size and Forecasts for all the Above Segments in Terms of Value (USD).

Japan Artificial Intelligence (AI) Optimised Data Center Market Size

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Japan Artificial Intelligence (AI) Optimised Data Center Market Analysis

The Japan Artificial Intelligence Optimised Data Center Market size is estimated at USD 64.90 million in 2025, and is expected to reach USD 20.75 million by 2030, at a CAGR of 26.14% during the forecast period (2025-2030).

Japan is witnessing a surge in investments in artificial intelligence infrastructure, with a focus on establishing advanced AI data centers. A notable development includes SoftBank's (9434.T) plan to repurpose a former Sharp LCD panel plant in Osaka into a cutting-edge AI data center. This initiative, in collaboration with OpenAI, highlights the country's commitment to leveraging AI technologies for future growth.

Japan is emerging as a significant player in the AI data center landscape, with companies increasingly investing in advanced infrastructure to support AI-driven applications. The country is leveraging its technological expertise and robust energy resources, including nuclear power, to develop high-performance and sustainable data centers. These facilities are designed to cater to the growing demand for AI training and inference, positioning Japan as a hub for AI innovation in Asia.

For instance, in June 2024, electronics company Sharp partnered with telco KDDI to build what is claimed to be Asia's largest AI data center in Osaka, Japan. The facility, located at a former LCD screen manufacturing plant, will host Nvidia's latest GB200 NVL72 server racks, featuring 72 GPUs built on Nvidia's Blackwell architecture. This project highlights Japan's commitment to advancing AI infrastructure while promoting green computing and sustainability.

The Japanese government is actively investing in artificial intelligence (AI) to strengthen its domestic capabilities and reduce reliance on foreign technologies. In April 2024, the government announced a funding initiative of 72.5 billion yen (USD 470 million) to support the development of an AI supercomputer. This funding will be distributed among five companies, including telecom provider KDDI and cloud service vendor Sakura Internet, with Sakura receiving the largest share of 50.1 billion yen (USD 324 million). This initiative aligns with Japan's broader efforts to enhance its AI infrastructure, including the deployment of AI-focused data centers.

Additionally, Japan's AI data center initiatives are expected to play a pivotal role in supporting the global AI ecosystem. These centers are designed to handle the increasing computational demands of AI applications, including natural language processing, machine learning, and generative AI models. By fostering collaborations between private enterprises and government bodies, Japan aims to establish itself as a leader in AI infrastructure, driving innovation and economic growth in the region.

Japan Artificial Intelligence (AI) Optimised Data Center Industry Overview

Japan's AI data center market is advancing at a rapid pace, driven by increasing demand for advanced digital infrastructure to support artificial intelligence (AI), cloud computing, and other emerging technologies. Key players in this market include global giants such as SoftBank, Princeton Digital Group, KDDI CORPORATION, NTT DATA Group Corporation, and Mitsubishi Corporation. These companies are actively investing in expanding data center capacities, leveraging cutting-edge technologies to meet the growing needs of AI-driven applications and cloud services. The market's growth is further bolstered by the Japanese government's initiatives, which aim to enhance AI capabilities and foster innovation within the country. Together, these factors position Japan as a significant player in the global AI data center landscape, with robust growth prospects in the coming years.

In April 2025, Princeton Digital Group launched its TY1 campus, a USD 1 billion data center facility in Saitama City designed to support high-performance AI computing. The TY1 campus, located approximately 35 kilometers from central Tokyo, has an IT capacity of 96MW and delivers 140kW per rack of high-density capacity. This figure is among the highest globally for data centers supporting AI workloads, positioning TY1 as one of the largest and most advanced sites of its kind in Japan.

Mitsubishi Corp. is planning to build a new AI-ready data center in Kawasaki, Kanagawa prefecture, on a site previously used by JFE Holdings for a blast furnace. The project, estimated to cost ¥ 100 billion (approximately US$ 664 million), is expected to be completed by 2030. This move highlights Mitsubishi's growing focus on the global data center market, complementing its existing expertise in providing power, cooling, and digital technologies to such facilities.

Japan Artificial Intelligence (AI) Optimised Data Center Market Leaders

  1. NTT Global Data Centers

  2. Equinix

  3. MC Digital Realty

  4. KDDI Telehouse

  5. Colt DCS

  6. *Disclaimer: Major Players sorted in no particular order
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Japan Artificial Intelligence (AI) Optimised Data Center Market News

  • March 2025: SoftBank acquired Sharp’s former LCD panel plant in Sakai, Osaka, for approximately $676 million. The company plans to transform the facility into a large-scale AI data center with an initial power capacity of 150 megawatts, scalable up to 400 megawatts. Operations are expected to commence in 2026, aiming to support advanced AI workloads and services
  • December 2024: KDDI and Sharp entered into a memorandum of understanding to establish an AI data center at the Green Front Sakai site, formerly Sharp’s LCD panel factory. KDDI will acquire the land and facilities, with construction set to begin by March 2025 and full-scale operations targeted by March 2026. The project aims to contribute to Japan’s digital infrastructure and economic revitalization.

Japan Artificial Intelligence (AI) Optimised Data Center Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions And Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET OVERVIEW

  • 4.1 Emergence of AI in Data Center
  • 4.2 Challenges Faced By traditional Data Centers (Supply and Demand Dynamics)
  • 4.3 Where can AI provide immediate results?

5. PESTLE Analysis

6. MARKET DYNAMICS

  • 6.1 Market Drivers
    • 6.1.1 Surge in Generative AI and High-Performance Computing Demand
    • 6.1.2 Localizing Data for Regulatory Compliance and AI Training
  • 6.2 Market Challenges
    • 6.2.1 Scarcity of Land and Power in Major Metro Areas
    • 6.2.2 Rising Energy Costs and Cooling Requirements for AI Workloads

7. Market Segmentation and Competitive Landscape

  • 7.1 By Data Center Type
    • 7.1.1 CSP Data Centers
    • 7.1.2 Colocation Data Centers
    • 7.1.3 Others (Enterprise and Edge)
  • 7.2 By Component
    • 7.2.1 Hardware
    • 7.2.1.1 Power
    • 7.2.1.2 Cooling
    • 7.2.1.3 IT Equipments
    • 7.2.1.4 Others
    • 7.2.2 Software Technology
    • 7.2.2.1 Machine Learning
    • 7.2.2.2 Deep Learning
    • 7.2.2.3 Natural Language Processing
    • 7.2.2.4 Computer Vision
    • 7.2.3 Services - (Managed Services, Proffesional Services, etc)

8. Competitive Landscape

  • 8.1 Company Profiles
    • 8.1.1 NTT Global Data Centers Japan
    • 8.1.2 Equinix Japan
    • 8.1.3 MC Digital Realty (Digital Realty + Mitsubishi)
    • 8.1.4 KDDI Telehouse
    • 8.1.5 Colt Data Centre Services
    • 8.1.6 SoftBank IDC Frontier
    • 8.1.7 NEC Corporation
    • 8.1.8 Fujitsu Limited
    • 8.1.9 Mitsui Fudosan x Stack Infrastructure
    • 8.1.10 ARTERIA Networks
    • 8.1.11 Rakuten Symphony DC
    • 8.1.12 @Tokyo
    • 8.1.13 SCSK NetFrontier
    • 8.1.14 Amazon Web Services Japan
    • 8.1.15 Google Cloud Tokyo Region
    • 8.1.16 Microsoft Azure Japan East/West
    • 8.1.17 Intel Corporation
    • 8.1.18 Advanced Micro Devices, Inc.
    • 8.1.19 NVIDIA Corporation
    • 8.1.20 ARM Limited
    • 8.1.21 Sunbird Software, Inc.
    • 8.1.22 Cisco Systems, Inc.
    • 8.1.23 Nlyte Software Ltd.
    • 8.1.24 Schneider Electric SE
    • 8.1.25 ABB Ltd.
    • 8.1.26 Vertiv Group Corp.
    • 8.1.27 Alfa Laval AB
    • 8.1.28 Green Revolution Cooling, Inc.
  • *List Not Exhaustive

9. Future Outlook and Emerging Trends

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Japan Artificial Intelligence (AI) Optimised Data Center Industry Segmentation

The research encompasses the full spectrum of AI applications in data centers, covering hyperscale, colocation, enterprise, and edge facilities. The analysis is segmented by component, distinguishing between hardware and software. Hardware considerations include power, cooling, networking, IT equipment, and more. Software technologies under scrutiny encompass machine learning, deep learning, natural language processing, and computer vision. The study also evaluates the geographical distribution of these applications.

Additionally, it assesses AI's influence on sustainability and carbon neutrality objectives. A comprehensive competitive landscape is presented, detailing market players engaged in AI-supportive infrastructure, encompassing both hardware and software utilized across various AI data center types. Market size is calculated in terms of revenue generated by products and solutions providers in the market, and forecasts are presented in USD Billion for each segment.

By Data Center Type CSP Data Centers
Colocation Data Centers
Others (Enterprise and Edge)
By Component Hardware Power
Cooling
IT Equipments
Others
Software Technology Machine Learning
Deep Learning
Natural Language Processing
Computer Vision
Services - (Managed Services, Proffesional Services, etc)
By Data Center Type
CSP Data Centers
Colocation Data Centers
Others (Enterprise and Edge)
By Component
Hardware Power
Cooling
IT Equipments
Others
Software Technology Machine Learning
Deep Learning
Natural Language Processing
Computer Vision
Services - (Managed Services, Proffesional Services, etc)
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Japan Artificial Intelligence (AI) Optimised Data Center Market Research FAQs

How big is the Japan Artificial Intelligence Optimised Data Center Market?

The Japan Artificial Intelligence Optimised Data Center Market size is expected to reach USD 64.90 million in 2025 and grow at a CAGR of 26.14% to reach USD 20.75 million by 2030.

What is the current Japan Artificial Intelligence Optimised Data Center Market size?

In 2025, the Japan Artificial Intelligence Optimised Data Center Market size is expected to reach USD 64.90 million.

Who are the key players in Japan Artificial Intelligence Optimised Data Center Market?

NTT Global Data Centers, Equinix, MC Digital Realty, KDDI Telehouse and Colt DCS are the major companies operating in the Japan Artificial Intelligence Optimised Data Center Market.

What years does this Japan Artificial Intelligence Optimised Data Center Market cover, and what was the market size in 2024?

In 2024, the Japan Artificial Intelligence Optimised Data Center Market size was estimated at USD 47.94 million. The report covers the Japan Artificial Intelligence Optimised Data Center Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Japan Artificial Intelligence Optimised Data Center Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Japan Artificial Intelligence (AI) Optimised Data Center Industry Report

Statistics for the 2025 Japan Artificial Intelligence (AI) Optimised Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Artificial Intelligence (AI) Optimised Data Center analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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