Japan Data Center Cooling Market Size
| Study Period | 2018 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 233.29 Million |
| Market Size (2030) | USD 426.70 Million |
| CAGR (2024 - 2030) | 10.59 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Japan Data Center Cooling Market Analysis
The Japan Data Center Cooling Market size is estimated at USD 233.29 million in 2024, and is expected to reach USD 426.70 million by 2030, growing at a CAGR of 10.59% during the forecast period (2024-2030).
- The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country/region.
- The upcoming IT load capacity of the Japan data center market is expected to reach 2100 MW by 2030. The country's construction of raised floor area is expected to increase to 10K sq. ft by 2030.
- The country's total number of racks to be installed is expected to reach 512K units by 2030. Osaka and Tokyo are expected to house the maximum number of racks by 2030. Throughout the year, temperatures typically fluctuate between 2°C and 30°C, rarely dropping below -1°C or above 0.5°C.
- There are close to 32 submarine cable systems connecting Japan, and many are under construction.
Japan Data Center Cooling Market Trends
Liquid-based Cooling is The Fastest Growing Segment
- Technological advances have made liquid cooling easier to maintain, more scalable, and more affordable, reducing data center liquid consumption by more than 15% in tropical climates and by 80% in greener areas. The energy used for liquid cooling can be recycled to heat buildings and water, and advanced artificial refrigerants can effectively reduce the carbon footprint of air conditioners.
- Some Japanese companies already use snow as a coolant for at least several months of the year. Based in Niigata prefecture on Japan's north coast, DataDock Inc. cools its servers in Nagaoka City with snowmelt and cold outside air.
- Japanese data center providers KDDI and NTT DATA are researching immersion technology to significantly reduce energy waste in cooling server hardware. In KDDI's field test, we achieved an astounding result of reducing power consumption during temperature control by 94% compared to conventional air cooling systems. KDDI said IT equipment is often thought of as the biggest consumer of power, but about half of the total power consumption in data centers is used for cooling.
- Direct liquid cooling (DLC) solutions can achieve partial power usage effectiveness (PUE) values ranging from 1.02 to 1.03, surpassing the efficiency of even the most advanced air cooling systems by a low single-digit margin. It is important to note, however, that PUE does not account for a significant portion of the energy efficiency improvements attributed to DLC. In traditional server setups, fans are responsible for power consumption within the server rack, and this power usage is factored into the IT power section of the PUE calculation. These fans are considered an integral part of the data center's overall energy consumption.
IT & Telecommunication is the Largest Segment
- Japan is home to major ICT organizations such as Sony, Panasonic, Fujitsu, NEC, and Toshiba, which continue to play a key role in the country's expansion as a major center for ICT. In addition, the orderly development of numerous modernization and expansion projects in the country, along with increasing government spending on maintaining high-quality and advanced infrastructure, are also driving the growth of the market.
- Global cloud service providers that generate big data, represented by mega-cloud platformers, are investing in data center in Japan. On the other hand, traditional enterprise data centers (or enterprise DCs) are in steady demand by mainstream companies. This is due to the growth in public cloud services. Public cloud services don’t require large-scale infrastructure investments, are typically stable in operation, and provide scalability and robustness.
- In Japan, the growth of PaaS and IaaS is particularly noteworthy. Low barriers to adoption characterize both due to their low capital investment burden. The fact that they can be used as needed may also be a factor in accelerating their adoption by enterprises. According to Japanese Ministry of Internal Affairs and Communications, as for the public cloud services model, based on data collected from a sample of 1,042 businesses, 60.0% of companies using PaaS solutions use AWS (Amazon Web Services), followed by Azure (Microsoft Azure) at 48.2%, and GCP (Google Cloud Platform) at 28.8%. Among all IaaS users, AWS accounted for 54.7%, Azure 44.0%, and GCP 26.2%. Therefore, the data center computing capacity is increasing which would further accelerate the demand for advance cooling technology in Japan.
Japan Data Center Cooling Industry Overview
The Japan data center cooling market is moderately competitive and has recently gained a competitive edge. Currently, a few major players, including Stulz GmbH, Schneider Electric SE, Vertiv Group Corp., Daikin Industries Ltd, and Trane Inc., hold a dominant position in the market. These industry giants, boasting significant market shares, are actively engaged in expanding their customer base throughout the region. Their growth strategies primarily hinge on strategic collaborative efforts aimed at enhancing market share and overall profitability. Moreover, companies such as Schneider Electric SE, Johnson Controls Inc. offer both liquid and air based cooling products.
Japan Data Center Cooling Market Leaders
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Vertiv Co.
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Schneider Electric SE
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STULZ GMBH
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Daikin Industries Ltd
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Trane Inc.
*Disclaimer: Major Players sorted in no particular order
Japan Data Center Cooling Market News
- March 2023: Managed service provider (MSP) Interactive introduced its Immersion Data Center Cooling solution, aimed at enhancing high-performance computing (HPC) capabilities for its clientele. Collaborating with digital infrastructure provider Vertiv, MSP has integrated the system with green revolution cooling tanks. These tanks employ a single-phase, non-conductive coolant known for its electrical component safety and exceptional heat transfer capacity, reportedly 1200 times greater than that of air.
- March 2023: LiquidStack secured a significant investment from HVAC company Trane Technologies, signaling a new frontier in immersion cooling technology. LiquidStack's exclusive liquid immersion cooling technology sets a higher standard for sustainable data center cooling. These immersion cooling solutions align with the company's ambitious sustainability goals, which include reducing carbon emissions within its customer base by one billion tons by 2030 and achieving net-zero emissions by 2050. Moreover, they assist in achieving
Japan Data Center Cooling Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope Of The Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Key cost considerations for Cooling
4.2.1 Analysis of the key cost overheads related to DC operations with an eye on DC Cooling
4.2.2 Comparative Study of the cost and operational considerations related to each Cooling technology � based on key factors such as design complexity, PUE, advantages, drawbacks, extent of utilization of natural weather conditions)
4.2.3 Key innovations and developments in Data Center Cooling
4.2.4 Key energy efficiency practices adopted in Data Centers
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rapid Digitization and adoption of AI and HPC Workload in the Region
5.1.2 Emergence of Green Data Centers
5.2 Market Challenges
5.2.1 Supply Chain Disruption Globally
5.3 Industry Ecosystem Analysis
6. ANALYSIS OF THE CURRENT DATA CENTER FOOTPRINT IN JAPAN
6.1 Analysis of IT Load Capacity & Area footprint of Data Centers (for the period of 2017-2030)
6.2 Analysis of the current DC hotspots and scope for future expansion in Japan
6.3 Analysis of major Data Center Contractors and Operators in Japan
7. INDONESIA DATA CENTER MARKET SEGMENTATION
7.1 By Cooling Technology
7.1.1 Air-based Cooling
7.1.1.1 Chiller and Economizer
7.1.1.2 CRAH
7.1.1.3 Cooling Tower (covers direct, indirect & two-stage cooling)
7.1.1.4 Others
7.1.2 Liquid-based Cooling
7.1.2.1 Immersion Cooling
7.1.2.2 Direct-to-Chip Cooling
7.1.2.3 Rear-Door Heat Exchanger
7.2 By Type
7.2.1 Hyperscalers (owned & Leased)
7.2.2 Enterprise (On-premise)
7.2.3 Colocation
7.3 By End user Vertical
7.3.1 IT & Telecom
7.3.2 Retail & Consumer Goods
7.3.3 Healthcare
7.3.4 Media & Entertainment
7.3.5 Federal & Institutional agencies
7.3.6 Other end-users
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Vertiv Co.
8.1.2 Schneider Electric SE
8.1.3 STULZ GMBH
8.1.4 Daikin Industries Ltd
8.1.5 Trane Inc.
8.1.6 Johnson Controls International PLC
8.1.7 Mitsubishi Electric Corporation
8.1.8 RITTAL Electro-Mechanical Technology Co. Ltd (RITTAL GMBH & CO. KG)
8.1.9 Nortek Air Solutions
8.1.10 Munters Air Treatment Equipment (Beijing) Co. Ltd
8.1.11 CoolIT Systems Inc.
8.1.12 Asetek AS
8.1.13 Wakefield-Vette Inc.
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
11. ABOUT US
Japan Data Center Cooling Industry Segmentation
Data center cooling is a set of techniques and technologies to maintain optimal operating temperatures in data center environments. Data center cooling is critical as data center facilities house many computer servers and network equipment that generate heat during operation. Efficient cooling systems are used to dissipate this heat and prevent equipment from overheating, ensuring continued reliable operation of the data center. Various methods, such as air conditioning, liquid cooling, and hot/cold aisle containment, are commonly used to control temperature and humidity in data centers.
The Japan Data Center Cooling Market Study Comprises by Technology (Air-Based Cooling (Chiller and Economizer, CRAH, Cooling Towers and Others), Liquid-Based Cooling (Immersion Cooling, Direct-To-Chip Cooling, Rear-Door Heat Exchanger)), Type of Data Center (Hyperscaler, Enterprise and Colocation), by End-User Industry(IT & Telecom, Retail & Consumer Goods, Healthcare, Media & Entertainment, Federal & Institutional Agencies, and Other End-Users).
The Report Offers Market Sizes and Forecasts in Value (USD) for all the Above Segments.
| By Cooling Technology | ||||||
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| By Type | |
| Hyperscalers (owned & Leased) | |
| Enterprise (On-premise) | |
| Colocation |
| By End user Vertical | |
| IT & Telecom | |
| Retail & Consumer Goods | |
| Healthcare | |
| Media & Entertainment | |
| Federal & Institutional agencies | |
| Other end-users |
Japan Data Center Cooling Market Research FAQs
How big is the Japan Data Center Cooling Market?
The Japan Data Center Cooling Market size is expected to reach USD 233.29 million in 2024 and grow at a CAGR of 10.59% to reach USD 426.70 million by 2030.
What is the current Japan Data Center Cooling Market size?
In 2024, the Japan Data Center Cooling Market size is expected to reach USD 233.29 million.
Who are the key players in Japan Data Center Cooling Market?
Vertiv Co., Schneider Electric SE, STULZ GMBH, Daikin Industries Ltd and Trane Inc. are the major companies operating in the Japan Data Center Cooling Market.
What years does this Japan Data Center Cooling Market cover, and what was the market size in 2023?
In 2023, the Japan Data Center Cooling Market size was estimated at USD 208.58 million. The report covers the Japan Data Center Cooling Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Japan Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Japan Data Center Cooling Industry Report
Statistics for the 2024 Japan Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Data Center Cooling analysis includes a market forecast outlook to for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Japan Data Center Cooling Market Report Snapshots
