In This Article:
Japanese Data Center Market
Dublin, Jan. 05, 2023 (GLOBE NEWSWIRE) -- The "Japan Data Center Market - Investment Analysis & Growth Opportunities 2022-2027" report has been added to ResearchAndMarkets.com's offering.
This report analyses the Japan data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments.
Japan is among the top data center market in the APAC region, after China and Australia, in terms of investment. The high internet and social media penetration across the country is driven by the deployment of 5G services, better and improved inland connectivity, availability of renewable energy and free cooling solutions, and others, making Japan an attractive market for investors.
The Japan data center market is primarily concentrated in the Tokyo and Osaka regions, that house over 75% of the existing capacity. The country has a presence of local and global data center operators such as Equinix, Colt Data Centre Services, Telehouse, NTT Communications, AT TOKYO, Fujitsu, ARTERIA Networks, and SCSK Corporation (netXDC), among others. The region is the most expensive country to build a data center facility. As per Turner & Townsend in Tokyo in 2021, the construction costs were around USD 12.50 per watt.
Acquisitions and joint ventures enable new players to enter the Japanese market, attract customers, and capture a more significant market share. Global businesses in the country, such as Toyota Motor Corporation, SoftBank, Japan Post, Sony, and Honda Motor Company, are driving higher data usage due to the increased use of the applications and platforms such as big data and artificial intelligence.
REPORT HIGHLIGHTS
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The Japan data center market is one of the established markets in the APAC region and is witnessing several new investments from local and global operators.
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Apart from colocation operators, the country is also witnessing several new investments from private equity and real estate firms such as Hulic, Gaw Capital, ESR, GLP (Global Logistic Properties), and others.
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Japan has around 104 operational colocation data centers. Most colocation centers are being designed according to Tier III standards. For instance, Digital Edge's OSA1 data center in Osaka is certified as Tier III.
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The country is also witnessing improvements in submarine and inland connectivity. For instance, Topaz, Apricot, JUNO, and Southeast Asia-Japan Cable 2 (SJC2) are some of the developing submarine cables that will connect Japan with the U.S., Canada, and other APAC countries.
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Significant deployment and adoption of 5G services in Japan will fuel data traffic and increase demand for more data centers. For instance, Edge Centres has announced plans to build two edge data centers in the country.
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The increasing trend of procuring renewable energy for power facilities in the country will likely continue during the forecast year, contributing to the country's goal of becoming carbon neutral by 2050.
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The price of lithium-ion batteries has decreased over the years, which has observed high demand for lithium-ion UPS systems.
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The share of diesel generators is expected to decline with the adoption of gas generators in the market as they are fuel efficient and environmentally friendly.
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Monitored and metered/switched PDUs will experience strong adoption in the market owing to the growing awareness of end-to-end power monitoring in data centers during the forecast period.
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The Japanese data center market is dominated by direct free cooling solutions that will increase the adoption of duct systems in the facilities.
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Evaporative and water-based economizer solutions support the adoption of pipes and valves in N+N redundancy.
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Greenfield projects will witness an increased investment from local and global data center providers as they aim to expand their presence.
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The DCIM adoption is likely to grow in the future as man-hours are reduced to handle critical data center tasks.
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Infrastructure level monitoring is likely to increase than end-to-end facility management.