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Japan Data Center Cooling Market Size (2024 - 2029)

The Japan data center cooling market is experiencing growth driven by the increasing demand for cloud computing, government regulations for local data security, and rising investments by domestic players. This growth is reflected in the expanding market size, with significant developments in IT load capacity and the construction of raised floor areas. The market is also witnessing a rise in the number of racks to be installed, particularly in major cities like Osaka and Tokyo. Additionally, the connectivity of Japan is enhanced by numerous submarine cable systems, further supporting the market's expansion.

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Market Size of Japan Data Center Cooling Industry

Japan Data Center Cooling Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2030) 7.30 %
Market Concentration Medium

Major Players

Japan Data Center Cooling Market Major Players

*Disclaimer: Major Players sorted in no particular order

Japan Data Center Cooling Market Analysis

The Japan Data Center Cooling Market is expected to register a CAGR of 7.30% during the forecast period.

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 2029. The country's construction of raised floor area is expected to increase to 10K sq. ft by 2029.
  • The country's total number of racks to be installed is expected to reach 512K units by 2029. Osaka and Tokyo are expected to house the maximum number of racks by 2029. 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 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 equipments 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 is segmented by cooling technology type (air-based cooling, liquid-based cooling, and evaporative cooling) and by end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end-users).

The market sizes and forecasts are provided in terms of value (USD) for all the above segments

Cooling Technology
Air-based Cooling
Liquid-based Cooling
Evaporative Cooling
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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Japan Data Center Cooling Market Size Summary

The Japan data center cooling market is experiencing significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from domestic players. The market is characterized by technological advancements in cooling solutions, such as liquid cooling and immersion technology, which are becoming more scalable and cost-effective. These innovations are crucial in reducing energy consumption and carbon footprints, addressing the substantial energy demands of data centers. The market is also supported by Japan's robust ICT infrastructure, with major companies like Sony, Panasonic, and Fujitsu contributing to the sector's expansion. The government's initiatives to accelerate digital transformation and support SMEs further bolster the market's growth prospects.

The competitive landscape of the Japan data center cooling market is moderately competitive, with key players like Stulz GmbH, Schneider Electric SE, and Vertiv Group Corp. holding significant market shares. These companies are at the forefront of developing sustainable cooling solutions, such as those using low global warming potential refrigerants and direct liquid cooling systems. The market is also witnessing strategic investments and expansions, such as Equinix's substantial investment in new data centers to enhance corporate connectivity. Additionally, the government's efforts to deploy wireless networks and complete digital infrastructure projects by 2025 are expected to drive further growth in the market, aligning with the country's broader digital economy goals.

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Japan Data Center Cooling Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Development of IT Infrastructure in the Region

      2. 1.2.2 Emergence of Green Data Centers

    3. 1.3 Market Restraints

      1. 1.3.1 Costs, Adaptability Requirements, and Power Outages

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Cooling Technology

      1. 2.1.1 Air-based Cooling

      2. 2.1.2 Liquid-based Cooling

      3. 2.1.3 Evaporative Cooling

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

Japan Data Center Cooling Market Size FAQs

The Japan Data Center Cooling Market is projected to register a CAGR of 7.30% during the forecast period (2024-2030)

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.

Japan Data Center Cooling Market Report Snapshots

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