Dublin, Jan. 15, 2026 (GLOBE NEWSWIRE) — The “Japan Data Center Market – Investment Analysis & Growth Opportunities 2026-2031” report has been added to ResearchAndMarkets.com’s offering.
The Japan Data Center Market was valued at USD 12.76 Billion in 2025, and is projected to reach USD 38.91 Billion by 2031, rising at a CAGR of 20.42%.
Japan has about 119 operational colocation data centers. Most colocation data centers are being developed according to Tier III standards. Tokyo is the top data center destination in the country. It continues to be Japan leading hub for data center expansion, marked by a concentrated growth in advanced facilities, hyperscale data centers, and dedicated cloud regions. As of June 2025, there are around 74 existing and 26 upcoming data centers in Tokyo.
After Tokyo and Osaka, the demand for data center investments in locations such as Hokkaido, Kyushu, Nagoya, and Yokohama will increase. These regions offer key advantages, including land availability, government support, and lower land and construction costs, making them attractive destinations for data center investors in the coming years
The trend of liquid cooling in Japanese data centers is growing due to the increasing demand for High-Performance Computing (HPC), AI workloads, and energy efficiency. Liquid cooling is more efficient than air cooling, as liquids can absorb and transfer heat more effectively than air.
In September 2025, Preferred Networks (PFN), Internet Initiative Japan (IIJ), and the Japan Advanced Institute of Science and Technology (JAIST) began pilot testing liquid-cooled high-density AI servers and hybrid-cooled data centers at IIJ’s Matsue Data Center Park (DCP) and JAIST’s Ishikawa campus; the main objective was to develop an ultra-efficient AI computing infrastructure.
JAPAN DATA CENTER MARKET VENDOR LANDSCAPE
The Japan data center market has the presence of several major data center operators such as AT TOKYO, AirTrunk, Colt Data Centre Services, Digital Edge, Equinix, Fujitsu, Goodman, IDC Frontier, Internet Initiative Japan (IIJ), MC Digital Realty, NTT Communications, STACK Infrastructure, and Telehouse (KDDI). Some of the data center operators have expanded their facilities across the country, with new development initiatives expected to become operational during the forecast period.The country accounts for the presence of some of the major cloud operators, such as Amazon Web Services, Alibaba, Google, Microsoft, Oracle, and Tencent Cloud, with dedicated cloud region(s). Their cloud regions are spread across Tokyo and Osaka.Several local Japanese companies have formed joint ventures with global companies to invest in cloud computing, AI infrastructure, and sovereign cloud solutions. The goal of these collaborations is to accelerate digital transformation while ensuring data sovereignty, regulatory compliance, and the development of advanced technologies within the country.For instance, in October 2025, SoftBank announced a joint venture with Oracle to provide secure, compliant, and scalable sovereign cloud and AI services for organizations across Japan. Using Oracle Alloy, SoftBank will build an advanced cloud infrastructure in the data centers located in eastern and western Japan. All data and systems will be fully managed and operated within the country. The service is slated for launch in the eastern and western Japan data centers in April 2026 and October 2026, respectively.The Japan data center market is increasingly prioritizing sustainability, with many operators investing in energy-efficient infrastructure and renewable energy sources. For instance, In October 2025, Microsoft announced the signing of a Power Purchase Agreement (PPA) with Shizen Energy, a Japanese energy firm that offers around 100 MW of solar power in Japan. Additionally, the energy will be supplied from four solar projects located in Kyushu and Chugoku. One of the projects in Kyushu has become operational, while the rest three are currently under construction.
WHY SHOULD YOU BUY THIS RESEARCH?
Market size available in the investment, area, power capacity, and Japan colocation market revenue.An assessment of the data center investment in Japan by colocation, hyperscale, and enterprise operators.Data center investments in the area (square feet) and power capacity (MW) across cities in the country.A detailed study of the existing Japan data center market landscape, an in-depth industry analysis, and insightful predictions about the Japan data center market size during the forecast period.Snapshot of existing and upcoming third-party data center facilities in Japan Facilities Covered (Existing): 119Facilities Identified (Upcoming): 49Coverage: 17+ LocationsExisting vs. Upcoming (Data Center Area)Existing vs. Upcoming (IT Load Capacity) Data center colocation market in Japan Colocation Market Revenue & Forecast (2022-2031)Retail & Wholesale Colocation Revenue (2022-2031)Retail & Wholesale Colocation Pricing Japan data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.A transparent research methodology and the analysis of the demand and supply aspects of the market.
KEY QUESTIONS ANSWERED
How big is the Japan data center market?What is the growth rate of the Japan data center market?How much MW of power capacity will be added across Japan during 2026-2031?What factors are driving the Japan data center market?Which all geographies are included in Japan center market report?
Key Attributes:
Report AttributeDetailsNo. of Pages149Forecast Period2025 – 2031Estimated Market Value (USD) in 2025$12.76 BillionForecasted Market Value (USD) by 2031$38.91 BillionCompound Annual Growth Rate20.4%Regions CoveredJapan
VENDORS
IT Infrastructure Providers
Arista NetworksAtosBroadcomCisco SystemsDell TechnologiesFujitsuHewlett Packard Enterprise (HPE)Hitachi VantaraHuawei TechnologiesIBMInspurLenovoNECNetAppNVIDIAOraclePure Storage
Data Center Construction Contractors & Sub-Contractors
AECOMArupDaiwa House IndustryFuji Furukawa Engineering & ConstructionHASEKO CorporationHibiya EngineeringISGKajima CorporationKeihanshin BuildingLinesightMarcai DesignMeiho Facility WorksNEC FacilitiesNikken SekkeiNishimatsu ConstructionNTT FacilitiesObayashi CorporationShinryo CorporationTaisei CorporationTakenaka CorporationToda Corporation
Support Infrastructure Providers
3MABBAlfa LavalCaterpillarCumminsDelta ElectronicsEatonFuji ElectricHITEC Power ProtectionJohnson ControlsKawasaki Heavy IndustriesLegrandMitsubishi ElectricRehlkoRittalRolls-RoyceSchneider ElectricSiemensSTULZVertiv
Data Center Investors
AirTrunkAlibaba CloudAmazon Web ServicesAT TOKYOColt Data Centre ServicesDigital EdgeEquinixFujitsuGoodmanGoogleIDC FrontierInternet Initiative JapanMC Digital RealtyMicrosoftNTT CommunicationsSCSK Corporation (NETXDC)STACK InfrastructureTelehouseTencent CloudTIS INTEC Group
New Entrants
Asia Pacific Land (APL)Ada InfrastructureCapitaLandCyrusOneDayOneEdgeConneXEmpyrion DigitalESRFLOW Digital InfrastructureKeppel Data CentresNEXTDCPrinceton Digital GroupSC Zeus Data CentersST Telemedia Global Data CentresVantage Data CentersYondr Group
SEGMENTS
IT Infrastructure
ServersStorage SystemsNetwork Infrastructure
Electrical Infrastructure
UPS SystemsGeneratorsTransfer Switches & SwitchgearsPDUsOther Electrical Infrastructure
Mechanical Infrastructure
Cooling SystemsRack CabinetsOther Mechanical Infrastructure
Cooling Systems
CRAC & CRAH UnitsChiller UnitsCooling Towers, Condensers & Dry CoolersOther Cooling Units
General Construction
Core & Shell DevelopmentInstallation & Commissioning ServicesEngineering & Building DesignFire Detection & Suppression SystemsPhysical SecurityData Center Infrastructure Management (DCIM)
Tier Standard
Tier I & Tier IITier IIITier IV
Geography
EXISTING VS. UPCOMING DATA CENTERS
Existing Facilities in the region (Area and Power Capacity)
List of Upcoming Facilities in the region (Area and Power Capacity)
For more information about this report visit https://www.researchandmarkets.com/r/928a7d
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Japanese Data Center Market
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