According to Arizton research, the Japan data center colocation market size was valued at USD 2.87 billion in 2024 and is expected to reach USD 6.70 billion by 2030, growing at a CAGR of 15.18% during the forecast period.
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Report Summary:
MARKET SIZE – COLOCATION REVENUE USD 6.70 Billion (2030)
CAGR – COLOCATION REVENUE 15.18% (2024-2030)
MARKET SIZE – UTILIZED WHITE FLOOR AREA 17.80 million sq. feet (2030)
MARKET SIZE – UTILIZED RACKS 452.50 thousand units (2030)
MARKET SIZE – UTILIZED IT POWER CAPACITY 3,580 MW (2030)
BASE YEAR 2024
FORECAST YEAR 2025-2030
USD 6.70 Billion Opportunity: Japan Colocation Market Outlook
The Japan colocation data center market is witnessing a transformative phase as global hyperscale operators like Google, Microsoft, and AWS establish self-built facilities, reshaping the traditional revenue landscape for colocation providers. While hyperscale operators store workloads in their own campuses, Japan’s colocation market remains a leading hub in the APAC region, driven by strong demand for digital services across industries.
Operators are responding by constructing large-scale, high-powered data center campuses, with capacities exceeding 100 MW, ensuring they can meet growing enterprise and cloud requirements. Key players such as NTT DATA, GLP (Ada Infrastructure), EdgeConneX, APL, and Global Compute Infrastructure (GCI) are investing in these state-of-the-art facilities, signaling that the market share of large colocation centers is set to expand significantly during the forecast period. With average occupancy rates projected to reach around 93% by 2030, the market presents robust opportunities for operators who focus on scalable, efficient, and high-capacity solutions.
Japan Sets Ambitious 2040 Targets to Boost Renewable Energy Share
Japan is transforming its data center landscape by embracing energy-efficient designs, renewable energy sources, and innovative cooling solutions, efforts that align with the nation’s goal of reducing carbon emissions while strengthening digital infrastructure. Ambitious targets for 2040 aim to raise renewable energy’s share to 40%-50% and nuclear power to 20%, making the country an attractive hub for data centers and semiconductor facilities.
To reinforce sustainability, data centers pursue certifications like CASBEE and LEED, demonstrating environmental commitment. Reflecting this momentum, Hokkaido Electric Power announced plans to restart nuclear assets to support the surging demand for eco-conscious, future-ready digital infrastructure, highlighting Japan’s proactive approach to green growth.
Japan Bold Vision: Becoming the World’s Most AI-Friendly Nation
Japan data center market is rapidly embracing AI to transform operations and drive efficiency. From AI-driven cooling to advanced workload optimization, these technologies are fueling the country’s High-Performance Computing (HPC) capabilities and accelerating growth in AI, cloud computing, and digital transformation. With a vision to become the world’s most AI-friendly nation, Japan is backing policies, investments, and international collaborations that foster innovation. Highlighting this momentum, Kyndryl launched a dedicated AI private cloud in November 2024, partnering with Dell Technologies and NVIDIA to enable next-generation AI solutions across the country.
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Vendor Landscape
Existing Colocation Operators
- AirTrunk
- Colt Data Centre Services
- Digital Edge
- Equinix
- IDC Frontier
- Internet Initiative Japan (IIJ)
- MC Digital Realty
- NTT Communications
- STACK Infrastructure
- Telehouse (KDDI)
- ARTERIA Networks Corporation
- AT TOKYO
- Canon IT Solutions
- Fujitsu
- MIRAIT ONE Corporation
- Qualysite Technologies
- SAKURA Internet
- TIS INTEC Group
- netXDC
- Other Operators
New Operators
- APL + Global Compute Infrastructure (GCI)
- CapitaLand
- CyrusOne+KEP
- EdgeConneX
- Empyrion Digital
- ESR+CloudHQ
- Gaw Capital + Day One
- GLP (Ada Infrastructure)
- Goodman
- Keppel Data Centres
- NEXTDC
- OPTAGE
- Princeton Digital Group
- FLOW Digital Infrastructure
- SC Zeus Data Centers
- Secom Trust Systems
- SKYY Development
- ST Telemedia Global Data Centres
- Vantage Data Centers
- Yondr
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What Key Findings Will Our Research Analysis Reveal?
- How much MW of IT power capacity is likely to be utilized in Japan by 2030?
- What is the count of existing and upcoming colocation data center facilities in Japan?
- What factors are driving the Japan data center colocation market?
- Who are the new entrants in the Japan data center industry?
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