Japan Data Center Processor Market Size
| Study Period | 2021 - 2031 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2031 |
| Market Size (2025) | USD 2.33 Billion |
| Market Size (2031) | USD 5.24 Billion |
| CAGR (2025 - 2031) | 14.42% |
| Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
Japan Data Center Processor Market Analysis
The Japan Data Center Processor Market size is estimated at USD 2.33 billion in 2025, and is expected to reach USD 5.24 billion by 2031, at a CAGR of 14.42% during the forecast period (2025-2031).
Japan, after China in APAC, is a global leader in technology and a key data center hub. Tokyo, the capital, holds nearly 40% of the hyperscale data center capacity. Cities like Tokyo and Shibuya are spearheading generative AI adoption, reflecting rising interest from global city leaders. The country has heavily invested in AI data centers, equipping them with advanced servers, GPUs, CPUs, and AI accelerators to meet AI computing demands.
Japan, the world's second-oldest nation after Monaco, is embracing AI-powered automation to address its ageing population crisis. To regain its global technological prominence, in 2024, the country has launched a USD 65 billion initiative targeting advancements in microchips and artificial intelligence. AI Startups such as Preferred Networks Inc., Abeja Inc., and ExaWizards Inc. are driving innovation in Japan's thriving AI ecosystem. Meanwhile, established corporations like Sony Group Corporation, Hitachi Ltd., and SoftBank Group Corp. are heavily investing in AI research and development, further strengthening Japan's position in the global AI market.
Japan’s AI sector features key players like Nvidia Corporation, Intel Corporation, and Advanced Micro Devices, Inc., with Google LLC making notable advancements. Google has introduced TPU and GPU chips designed to enhance AI capabilities in data center operations.
Japan's AI industry is poised for rapid expansion, fueled by strides in AI, IoT, smart city initiatives, and industrial automation spanning manufacturing, IT, healthcare, and robotics. Dominating the global landscape, Japan stands out in AI, robotics, and the supercomputers market. Pioneering firms such as FANUC and SoftBank Robotics lead the charge, crafting AI-driven robots for sectors including manufacturing, healthcare, and services. This burgeoning growth has catalyzed investments in data centers, overseen by the government, which is also integrating cutting-edge CPUs and GPUs tailored for AI applications.
Japan Data Center Processor Market Trends
The Graphic Processing Unit (GPU) Segment is Expected to Drive the Growth of the Market
Data centers are turning to Graphics Processing Units (GPUs) to tackle challenges in artificial intelligence (AI), media processing, and 3D visualization. High-performance computing (HPC) and visual cloud computing are pushing the need for robust processing capabilities. By integrating GPUs, Japan data centers are adeptly handling surging workloads and growing data volumes, a trend fueled by AI progress and virtualization.
In Japan, industry giants like Intel Corporation, Advanced Micro Devices, Inc., and NVIDIA Corporation are at the forefront of the GPU market, offering innovative solutions for data centers. In 2024, NVIDIA unveiled significant hardware advancements, AI enhancements for scientific applications, and updates to its CUDA-Q and cuPyNumeric solutions. The tech titan also rolled out the H200 NVL PCIe GPU, designed for air-cooled data centers, and introduced the GB200 NVL4 form factor, broadening its hardware portfolio.
In 2024, Japan solidifies its position in GPU adoption across APAC, propelled by the expanding use of artificial intelligence across industries. The ongoing semiconductor shortage in Taiwan and global supply chain disruptions have created a GPU deficit, hindering AI advancements in Japan. To counter this, in October 2024, Fujitsu Limited introduced AI computing broker middleware to optimize GPU performance for AI applications. Various technology and data center operators such as Tradom Inc. is scheduled to implement this technology, while Sakura Internet Inc. is evaluating its feasibility for deployment in data centers.
In Japan, organizations and data center operators are increasingly adopting advanced GPUs in their computing platforms. For example, in 2024, SoftBank Corp has significantly advanced its AI computing platform in Japan by installing 4,000 Nvidia H100 GPUs, building on its initial setup of 2,000 Nvidia Ampere GPUs. This upgrade has propelled the platform's AI computing performance from 700 petaflops to an impressive 4.7 exaflops. By 2025, SoftBank Corp plans to integrate Nvidia DGX SuperPOD with GGX B200 systems, aiming to expand the GPU count to approximately 10,000 and elevate computing power to a remarkable 25.7 exaflops.
Government Backing Fuels Surge in Cloud Data Centers and Processor Startups Amidst Growing AI Adoption
The data center industry in Japan is witnessing a pivotal shift, propelled by innovations in cloud computing, artificial intelligence (AI), and automation. Leading companies, including Amazon Web Services Inc. (AWS), Microsoft Corporation, Google LLC, OVHcloud, International Business Machines Corporation (IBM) Cloud, Sakura Internet Inc., Oracle Corporation, and Alibaba Group Holding Limited, are utilizing advanced processors like CPUs, GPUs, and AI accelerators to enhance their offerings. In April 2024, Sakura Internet Inc. secured subsidies from the Japanese government to expand its cloud service "Koukaryoku" for generative AI, planning to increase GPU deployment fivefold to approximately 10,000 units, incorporating NVIDIA Corporation's "NVIDIA HGX B200 system," introduced in March.
The Japanese government is driving advancements in artificial intelligence by offering substantial financial incentives and fostering collaborations with supercomputers, high-performance computing (HPC) systems, and data center operators. The Ministry of Economy, Trade and Industry of Japan has introduced a subsidy program worth approximately USD 485 million to support the creation of domestic generative AI supercomputers. Under this initiative, Sakura Internet Inc. is expected to receive up to USD 335 million, marking a significant investment in the nation's AI infrastructure.
Japan's domestic cloud service providers are advancing in the processor market through strategic collaborations. Companies such as SoftBank Corp., GMO Internet Group, Inc., Highreso Inc., KDDI Corporation, Rutilea Inc., and Sakura Internet Inc. are working with NVIDIA Corporation to establish robust AI infrastructure. Supported by the Ministry of Economy, Trade and Industry of Japan, these efforts aim to transform industries like robotics, automotive, healthcare, telecommunications, and public services. Rutilea Inc., for instance, is investing in over 1,000 NVIDIA GPUs to develop large language models (LLMs) for various applications. Additionally, its subsidiary, AI Fukushima, is leveraging advanced AI technologies to strengthen the regional economy.
Japan Data Center Processor Industry Overview
The Japan data center processor market is consolidated led by prominent companies, including Intel Corporation, NVIDIA Corporation, Advanced Micro Devices, Inc., Ampere Computing LLC, and Arm Holdings PLC, which dominate through continuous innovation. These firms collaborate with cloud-based and colocation data center operators to meet rising demand and comply with regulations, offering advanced CPUs, GPUs, and AI accelerators. Industry leaders such as Empriyon Data Center, Singapore Telecommunications Limited (Singtel), Alibaba Group Holding Limited, Equinix, Digital Realty, Digital Edge, SoftBank Corp., Colt Technology Services Group Limited, Ada Infrastructure, and KDDI Corporation (Telehouse) have adopted these processors. For instance, in October 2024, SoftBank Corp. completed the installation of around 4,000 NVIDIA Hopper GPUs in its expanding top-tier AI computing platform in Japan. The AI platform's computing prowess has surged to an impressive 4.7 exaflops, now totaling around 6,000 GPUs.
Japan Data Center Processor Market Leaders
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Intel Corporation
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Advanced Micro Devices Inc.
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Ampere Computing
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NVIDIA Corporation
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ARM Holdings
- *Disclaimer: Major Players sorted in no particular order
Japan Data Center Processor Market News
- November 2024: Leading Japanese cloud service providers, including SoftBank Corporation, GMO Internet Group, Highreso, KDDI Corporation, Rutilea, and SAKURA Internet Inc., collaborated with NVIDIA Corporation to enhance AI infrastructure. This initiative aims to drive innovation in Japan's robotics, automotive, healthcare, and telecommunications industries. For example, SoftBank Corporation is utilizing NVIDIA's Blackwell platforms to develop the country's most advanced AI supercomputers, featuring the groundbreaking NVIDIA DGX SuperPOD with DGX B200 systems.
- July 2023: Digital Realty Trust, Inc.'s KIX13 data center in Osaka, Japan, earned certification from Nvidia Corporation to support its advanced DGX H100 systems. This milestone marks KIX13 as the company's first facility approved for Nvidia's latest DGX H100 generation. The DGX H100, powered by the H100 GPU with a maximum thermal design power (TDP) of 700W, can integrate up to eight GPUs in a single system.
Japan Data Center Processor Industry Segmentation
Data centers house and manage critical applications and data, using computing and storage networks for efficient delivery. Processors—GPUs, CPUs, and TPUs—are central to their operation. GPUs handle multitasking, excelling in graphics rendering and AI tasks. CPUs, with multi-core architecture, support parallel processing. TPUs, designed for machine learning, stand out from GPUs, which have transitioned from graphics to AI applications.
The Japan Data Center Processor Market is Segmented by Processor Type (CPU, GPU, FPGA, AI Accelerators), by Application (Advanced Data Analytics, AI/ML Training and Inferences, High Performance Computing, Security and Encryption, Network Functions, and Others), by Architecture (x86 and Non-x86 (ARM, Power and other processors), and by Data Center Type (Enterprise, Colocation and Cloud Service Providers). The Report Offers the Market Size and Forecasts for all the Above Segments in Terms of Value (USD).
| Market Segmentation - By Processor Type | GPU |
| CPU | |
| FPGA | |
| AI Accelerator | |
| Market Segmentation - By Application | Advanced Data Analytics |
| AI/ML Training and Inferences | |
| High Performance Computing | |
| Security and Encryption | |
| Network Functions | |
| Others | |
| Market Segmentation - By Architecture | x86 |
| Non-x86 (ARM, Power and other processors) | |
| Market Segmentation - By Data Center Type | Enterprise |
| Colocation | |
| Cloud Service Providers |
Japan Data Center Processor Market Research FAQs
How big is the Japan Data Center Processor Market?
The Japan Data Center Processor Market size is expected to reach USD 2.33 billion in 2025 and grow at a CAGR of 14.42% to reach USD 5.24 billion by 2031.
What is the current Japan Data Center Processor Market size?
In 2025, the Japan Data Center Processor Market size is expected to reach USD 2.33 billion.
Who are the key players in Japan Data Center Processor Market?
Intel Corporation, Advanced Micro Devices Inc., Ampere Computing, NVIDIA Corporation and ARM Holdings are the major companies operating in the Japan Data Center Processor Market.
What years does this Japan Data Center Processor Market cover, and what was the market size in 2024?
In 2024, the Japan Data Center Processor Market size was estimated at USD 1.99 billion. The report covers the Japan Data Center Processor Market historical market size for years: 2021, 2022, 2023 and 2024. The report also forecasts the Japan Data Center Processor Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.
Japan Data Center Processor Industry Report
Statistics for the 2025 Japan Data Center Processor market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Data Center Processor analysis includes a market forecast outlook for 2025 to 2031 and historical overview. Get a sample of this industry analysis as a free report PDF download.
