Market Size of japan data center Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 1.69 Thousand MW |
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Market Volume (2029) | 2.15 Thousand MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 4.97 % |
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Fastest Growing by Tier Type | Tier 1 and 2 |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Japan Data Center Market Analysis
The Japan Data Center Market size is estimated at 1.69 thousand MW in 2024, and is expected to reach 2.15 thousand MW by 2029, growing at a CAGR of 4.97% during the forecast period (2024-2029).
USD 2,836.30 Million
Market Size in 2024
USD 4,446.5 Million
Market Size in 2029
24.5%
CAGR (2017-2023)
9.4%
CAGR (2024-2029)
IT Load Capacity
1,688.5 MW
Value, IT Load Capacity, 2024
The IT load capacity of the Japanese data center market expected to reach 2151.53 MW by 2029. The Japanese Growth Strategy Council has called for boosting domestic economic growth through stimulating innovations, with digital transformation.
Total Raised Floor Space
Sq. Ft. 8.04 M
Volume, Raised Floor Space, 2024
The country's total raised floor area is expected to reach 10.2 million sq. ft by 2029. Tokyo has nearly 1,200 software start-ups in its ecosystem, with a strong representation in advanced manufacturing and robotics.
Installed Racks
402,037
Volume, Installed Racks, 2024
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.
# of DC Operators & DC Facilities
27 and 97
Volume, DC Facilities, 2024
The Japanese government is planning to build a number of new data centers across the county with the decentralization of landing bases for submarine cables to diversify landing points.
Leading Market Player
7.7%
Market Share, Air Trunk Operating Pty Ltd, 2023
Air Trunk Operating Pty Ltd holds the highest share of 7.7% 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.
Tier 3 data center accounted for majority share in terms of volume in 2023, Tier 4 is fastest growing through out the forecasted period
- 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.
Understand The Key Trends Shaping This Market
