Japan Data Center Market Insights On 119 Existing Facilities And 49 Upcoming Facilities Arizton

(MENAFN- Market Press Release) September 1, 2026 12:54 am - According to recent research by Arizton, the Japan Data Center Market was valued at USD 12.76 billion in 2025 and is projected to reach USD 38.92 billion by 2031, expanding at a remarkable CAGR of 20.42%.

According to recent research by Arizton, the Japan Data Center Market was valued at USD 12.76 billion in 2025 and is projected to reach USD 38.92 billion by 2031, expanding at a remarkable CAGR of 20.42%. As one of the most dynamic segments within the APAC region, the Japan Data Center Industry is being propelled by large-scale digital transformation initiatives, accelerated cloud adoption, and exponential growth in AI workloads.

Japan is steadily emerging as a global hub for AI infrastructure development, supported by proactive government initiatives, increasing foreign and domestic investments, and strategic collaborations among technology providers. This transition is accelerating demand for AI-ready facilities, high-density computing environments, and advanced cooling technologies, strengthening the overall Japan data center infrastructure landscape.

One of the major developments shaping the market is the HPE–KDDI Sakai Data Center project in Osaka, announced in June 2025. The facility will integrate NVIDIA Blackwell-based AI systems along with advanced liquid-cooling technologies and is expected to become operational in early 2026. The project reflects the growing deployment of hyperscale AI data centers across Japan.

Further strengthening its technological backbone, the National Institute of Information and Communications Technology (NICT) recorded a world-leading internet speed of 1.02 petabits per second in April 2025. This breakthrough enhances the high-speed connectivity infrastructure critical for future-ready facilities.

Japan Data Center Market Report Scope
Market Size (Investment): USD 38.92 Billion (2031)
Market Size (Area):2,570 thousand sq. feet (2031)
Market Size (Power Capacity):610 MW (2031)
CAGR - Investment (2025-2031):20.42%
Colocation Market Size (Revenue): USD 4.19 Billion (2031)
Historic Year:2022-2024
Base Year:2025
Forecast Year:2026-2031

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Japan Data Center Market Insights by Area
The Japan data center market by area is expected to reach 2,570 thousand sq. ft. by 2031, driven by the expansion of data center facilities across key cities. In 2025, Tokyo and Osaka emerged as the major locations for data center development, recording significant additions to data center space from operators such as AT TOKYO, Colt Data Centre Services, Digital Edge, Equinix, IDC Frontier, MC Digital Realty, NTT Communications, Telehouse, and AirTrunk. The continued expansion by these operators across major data center hubs is expected to support the growth of Japan's data center footprint through 2031.
This expansion is further supported by the availability of established industrial and data center parks, which provide suitable locations and infrastructure for new developments. Key facilities include Fuchu Intelligent Park, Goodman Business Park in Inzai, Osaka Bay Area, Shinagawa Seaside Industrial Park, Ota Industrial Park, Takatsuki Industrial Park, and Tokyo Port Terminal Corporation Industrial Park. The presence of these strategically located parks is expected to facilitate further data center development and contribute to the expansion of data center space across Japan.

List Of Facilities in Japan
Japan Data Center Landscape at a Glance
1 Covered (Existing): 119
2 Identified (Upcoming): 49
3: 17+ Locations
4 vs. Upcoming (Data Center Area)
5 vs. Upcoming (IT Load Capacity)
Data center colocation market in Japan
1 Market Revenue & Forecast (2022-2031)
2 & Wholesale Colocation Revenue (2022-2031)
3 & Wholesale Colocation Pricing

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Key Takeaways
1 Infrastructure: The server infrastructure segment held the leading position in Japan's data center market in 2025, accounting for approximately 52% of the total market
2 Infrastructure: The generator segment emerged as the dominant component of Japan's data center electrical infrastructure market in
3 Infrastructure: Cooling systems represented the largest share of Japan's data center mechanical infrastructure market in
4 Construction: The core & shell development segment accounted for approximately 46% of Japan's data center market in 2025, making it the leading general construction
5 Standard: Tier III facilities represented the largest share of Japan's data center market by tier standard in
6: Wholesale colocation services dominated Japan's colocation market, supported by the increasing demand for scalable and high-performance data infrastructure.

Japan Data Center Market – Key Highlights

Recent Developments

NTT DATA launched the ~30 MW Keihanna (OSK11) AI-ready data center in Kyoto.
DigitalBridge-led JV acquired NEC's data center assets, increasing M&A activity.
Mitsui and Hitachi are exploring floating data centers.
Japan's 3 major megabanks planned $6.67B+ digitalization investment in FY2025.
Google signed a vPPA for 15 MWAC solar power for its Inzai data center, targeted for March 2027.

Market Enablers

Extensive submarine cables and inland networks strengthen Japan's connectivity.
AWS, Alibaba Cloud, Google Cloud, IBM Cloud, Microsoft Azure, Oracle, and Tencent Cloud are expanding operations.
AI/HPC adoption is increasing demand for advanced infrastructure and liquid cooling.

Market Trends

AI workloads are driving AI-ready data centers and workload optimization.
Growing GPU demand, including NVIDIA H100, is accelerating liquid cooling adoption.

Market Restraints

Skilled labor shortages are worsened by Japan's aging workforce.
Earthquake risks increase seismic construction requirements.
Limited renewable-energy availability in some rural areas restricts site selection.

2025 Segmentation

Servers: ~52%
Generators: ~27%
Cooling systems: ~64%
Core & shell: ~46%
Tier III: ~65%
Wholesale colocation: Dominant colocation segment.

Competitive Landscape
Major operators include NTT Communications, Equinix, AirTrunk, Digital Edge, MC Digital Realty, STACK Infrastructure, Telehouse, AT TOKYO, and Colt DCS. Major cloud providers include AWS, Google, Microsoft, Oracle, Alibaba, and Tencent.

Key Sustainability Moves: SoftBank–Oracle is developing sovereign cloud services, while Microsoft signed a ~100 MW solar PPA with Shizen Energy.

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About Us:
Founded in 2017, Arizton Advisory & Intelligence delivers data-driven market research and strategic consulting that empowers clients to make informed decisions and drive growth. Combining quantitative and qualitative insights, we provide in-depth analysis across industries including Agriculture, Consumer Goods, Technology, Automotive, Healthcare, Data Centers, and Logistics. Recognized by top-tier media, our expert team transforms complex market data into actionable strategies, helping clients anticipate trends, seize opportunities, and stay ahead of the competition.

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Source: Arizton Advisory & Intelligence

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