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Japan Data Center Construction Market Size (2024 - 2029)

The Japan Data Center Construction Market is experiencing growth driven by the increasing demand for new facilities, fueled by the adoption of cloud computing, IoT, and AI. The government's initiatives to achieve carbon neutrality by 2050 are promoting the construction of green data centers, particularly in colder regions to reduce energy consumption. The deployment of 5G technology and the impact of edge computing are also significant factors contributing to the expansion of the market. The COVID-19 pandemic has further accelerated the need for digital services, leading to a heightened demand for data center construction.

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Market Size of Japan Data Center Construction Industry

Japan Data Center Construction Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 6.70 Billion
Market Size (2030) USD 9.90 Billion
CAGR (2024 - 2030) 6.59 %
Market Concentration Medium

Major Players

Japan Data Center Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

Japan Data Center Construction Market Analysis

The Japan Data Center Construction Market size is estimated at USD 6.70 billion in 2024, and is expected to reach USD 9.90 billion by 2030, growing at a CAGR of 6.59% during the forecast period (2024-2030).

Under Construction IT Load Capacity: The upcoming IT load capacity of the Japanese data center construction market is expected to reach more than 2000 MW by 2030.

Under Construction Raised Floor Space: The country's construction of raised floor area in data centers is expected to exceed 10.3 million sq. ft by 2030.

Planned Racks: The total number of racks to be installed is expected to reach more than 512,000 units by 2030.

Planned Submarine Cables: More than 30 submarine cable systems connect Japan, and many are under construction.

Japan Data Center Construction Industry Segmentation

Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.

The Japanese data center construction market is segmented by infrastructure into electrical infrastructure (power distribution solutions (PDU, transfer switches, switchgear, power panels and components, and others power distribution solutions), power back-up solutions (UPS and generators), service – design & consulting, integration, support & maintenance)), mechanical infrastructure (cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, in-row and in-rack cooling, racks, and other mechanical infrastructure)), and general construction. By tier type, the market is segmented into tier I and II, tier III, and tier IV. By end user, the market is segmented into (banking, financial services, and insurance, IT and telecommunications, government and defense, healthcare, and other end users. The market sizes and forecasts are provided in value terms (USD) for all the above segments.

Market Segmentation
By Infrastructure
By Electrical Infrastructure
Power Distribution Solutions
PDU - Basic & Smart - Metered & Switched Solutions
Transfer Switches
Static
Automatic (ATS)
Switchgear
Low-voltage
Medium-voltage
Power Panels and Components
Other Power Distribution Solutions
Power Back-up Solutions
UPS
Generators
Service - Design & Consulting, Integration, Support & Maintenance
By Mechanical Infrastructure
Cooling Systems
Immersion Cooling
Direct-to-Chip Cooling
Rear Door Heat Exchanger
In-row and In-rack Cooling
Racks
Other Mechanical Infrastructure
General Construction
By Tier Type
Tier-I and II
Tier-III
Tier-IV
By End User
Banking, Financial Services, and Insurance
IT and Telecommunications
Government and Defense
Healthcare
Other End Users
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Japan Data Center Construction Market Size Summary

The Japan Data Center Construction Market is experiencing a steady growth trajectory, driven by the increasing demand for data centers due to the widespread adoption of cloud computing, IoT, and AI technologies. The country's commitment to achieving carbon neutrality by 2050 has spurred initiatives to construct zero carbon-emission data centers, supported by government subsidies. The deployment of 5G technology and the rise of edge computing are also significant factors contributing to the market's expansion. The COVID-19 pandemic further accelerated the need for digital services, prompting the construction of new data centers to meet the surge in demand. The market is characterized by a preference for tier-3 data centers, which offer superior redundancy and uptime, making them the most widely adopted standard across the industry.

The market landscape is moderately fragmented, with major players like AECOM, DSCO Group, NTT Facilities, and others holding significant market shares. Hyperscale data centers are gaining traction, driven by increased cloud penetration and the need for higher-density solutions. These facilities are primarily located in regions such as Inzai City and the Kanto area, with substantial investments from global data center vendors. The market is witnessing ongoing developments, with companies like Digital Edge and Equinix announcing new projects to cater to the growing demand. Such investments highlight the globalization of the data center business, with real estate companies increasingly entering the market to leverage favorable locations for hyperscale data center construction.

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Japan Data Center Construction Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 Market Segmentation

      1. 1.1.1 By Infrastructure

        1. 1.1.1.1 By Electrical Infrastructure

          1. 1.1.1.1.1 Power Distribution Solutions

            1. 1.1.1.1.1.1 PDU - Basic & Smart - Metered & Switched Solutions

            2. 1.1.1.1.1.2 Transfer Switches

              1. 1.1.1.1.1.2.1 Static

              2. 1.1.1.1.1.2.2 Automatic (ATS)

            3. 1.1.1.1.1.3 Switchgear

              1. 1.1.1.1.1.3.1 Low-voltage

              2. 1.1.1.1.1.3.2 Medium-voltage

            4. 1.1.1.1.1.4 Power Panels and Components

            5. 1.1.1.1.1.5 Other Power Distribution Solutions

          2. 1.1.1.1.2 Power Back-up Solutions

            1. 1.1.1.1.2.1 UPS

            2. 1.1.1.1.2.2 Generators

          3. 1.1.1.1.3 Service - Design & Consulting, Integration, Support & Maintenance

        2. 1.1.1.2 By Mechanical Infrastructure

          1. 1.1.1.2.1 Cooling Systems

            1. 1.1.1.2.1.1 Immersion Cooling

            2. 1.1.1.2.1.2 Direct-to-Chip Cooling

            3. 1.1.1.2.1.3 Rear Door Heat Exchanger

            4. 1.1.1.2.1.4 In-row and In-rack Cooling

            5. 1.1.1.2.1.5 Racks

            6. 1.1.1.2.1.6 Other Mechanical Infrastructure

        3. 1.1.1.3 General Construction

      2. 1.1.2 By Tier Type

        1. 1.1.2.1 Tier-I and II

        2. 1.1.2.2 Tier-III

        3. 1.1.2.3 Tier-IV

      3. 1.1.3 By End User

        1. 1.1.3.1 Banking, Financial Services, and Insurance

        2. 1.1.3.2 IT and Telecommunications

        3. 1.1.3.3 Government and Defense

        4. 1.1.3.4 Healthcare

        5. 1.1.3.5 Other End Users

Japan Data Center Construction Market Size FAQs

The Japan Data Center Construction Market size is expected to reach USD 6.70 billion in 2024 and grow at a CAGR of 6.59% to reach USD 9.90 billion by 2030.

In 2024, the Japan Data Center Construction Market size is expected to reach USD 6.70 billion.

Japan Data Center Construction Market Report Snapshots

Japan Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)