Japan Data Center Market Growth and Trends

This technical report outlines the current state and projected growth of the data center market in Japan, emphasizing its position as the second largest in Asia. The report details the expected increase in capacity from approximately 1.4GW in 2023 to 2.4GW by 2028, with a compound annual growth rate (CAGR) of 11.5%. It highlights the significant role of hyperscalers in driving demand, particularly in Tokyo and Osaka, where the market is projected to grow from USD 2.339 billion in 2022 to USD 2.491 billion in 2023. The report also discusses the impact of AI and public cloud adoption on data center infrastructure, noting that hyperscale colocation is anticipated to grow by 11% year-over-year in 2023. Furthermore, it addresses challenges such as power infrastructure availability and land constraints in Tokyo, which are influencing the development of new data center hubs in regions like Saitama. Overall, the report provides a comprehensive view of the market dynamics, demand drivers, and future outlook for data centers in Japan.