Japan Data Center Power Market Size (2024 - 2029)

Japan Data Center Power Market Analysis

The Japan Data Center Power Market size is estimated at USD 0.82 billion in 2024, and is expected to reach USD 1.19 billion by 2029, growing at a CAGR of 5.27% during the forecast period (2024-2029).

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.

• Under construction IT load capacity: The upcoming IT load capacity of the Japanese data center market is expected to reach 2000 MW by 2029.
• Under construction raised floor space: The country's construction of raised floor area is expected to increase to 10 million sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach 500K units by 2029. Tokyo is expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are close to 30 submarine cable systems connecting Japan, and many are under construction. One such submarine cable that was estimated to start service in 2023 is Southeast Asia-Japan Cable 2 (SJC2), which stretches over 10,500 Kilometers with landing points from Chikura, Japan, and Shima, Japan.
• An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide, and the rising usage of data centers has increased electricity consumption in the country. As Japan has a low energy self-sufficiency ratio of 13.3% for 2021 compared to other OECD countries, presently, it largely depends on fossil fuels like oil, coal, and LNG, which are imported from overseas.
• Further, in the coming years, Japan has planned to reduce the use of fossil fuels and increase the share of renewable energy. The country’s economy is also becoming less energy-intensive. Moreover, to further reduce energy consumption, key market players are introducing efficient power management systems such as PDUs, busways, and UPS to control unnecessary expenditures in data centers, which is expected to increase the market's growth.

Japan Data Center Power Industry Segmentation

Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, that provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions tailored to the specific needs of data centers. Data center operators achieve data center redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance.

The Japanese data center power market is segmented by power infrastructure (electrical solution (UPS systems, generators, and power distribution solutions (PDU, switchgear, critical power distribution, transfer switches, remote power panels, and others)) and Service) and End User (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.