Market Trends of Japan Data Center Power Industry
The IT and Telecommunication Segment Holds a Major Share in the Market
- The increasing adoption of cloud-based services is driving the expansion of retail and hyperscale colocation services in Japan, resulting in increased demand for space in data centers and, consequently, the need for more racks within data centers.
- Cloud services are growing in popularity in Japan. The need for big data integration and the demand for more remote work and data migration to the cloud are driving the use of domestic cloud data centers.
- Cloud is expected to showcase major growth among all the end users. The Government of Japan’s Digital Agency promotes the utilization of cloud services for both central government and local government offices. In Japan, the business case for enterprises moving to cloud infrastructure is supported by several factors. Cloud infrastructure does not require a large capital investment, and cloud computing can easily be scaled to each company’s IT system. Overall, the growth rate for the cloud is 13.51%.
- Further, in the telecom sector, the government is continuing its push to deploy 5G and other cutting-edge technologies that could transfer data faster than currently available with the long-term evolution of LTE. NTT DOCOMO, KDDI, Softbank, and Rakuten Mobile were each allocated a 5G spectrum by the Ministry of Internal Affairs and Communication (MIC).
- Additionally, Mobile data service revenue in Japan is expected to increase at a growth rate of 6.8% during the forecast period, primarily driven by growing mobile internet subscriptions and the increasing adoption of higher average revenue per user (ARPU)-yielding 5G services. Such developmental aspects are expected to further complement the growth of the data centers in the region and substantiate the growth of servers and power infrastructure in the market.
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Monitored PDUs Hold a Significant Share in the Market
- Increasing focus on digitalization, internet penetration (94% by 2022), and e-commerce sales across the country require storage facilities, resulting in huge demand for data centers and a rise in power consumption. The increasing demand for data storage has led to the deployment of intelligent power distribution units (PDUs) against simple multi-socket rack installations with server and network equipment, which optimize power consumption in data centers.
- Compared to basic and metered PDUs, monitored rack PDUs are essential components in data center and server room infrastructure. They provide real-time monitoring of power usage, voltage, current, and other electrical parameters. This data helps administrators make informed decisions about power allocation and capacity planning.
- By tracking power usage trends, administrators can plan for future growth and ensure that power capacity is not exceeded, preventing overloads that could lead to equipment failures. Also, it helps identify inefficiencies and optimize energy usage. This can lead to cost savings and a reduced environmental footprint by eliminating unnecessary power consumption. Also, it allows administrators for remote access and control, reducing the need for physical presence and minimizing operational disruptions.
- On the other hand, Japan announced in 2021 that it would aim for a 46 % reduction of greenhouse gas emissions by 2030 from the levels achieved in 2013, with continued efforts to achieve a 50 % reduction. Also, to reach the 2050 carbon-neutral target, the Japanese government introduced measures that include thorough energy efficiency and strengthened measures to expand the introduction of non-fossil energy. Additionally, the Japanese government focused on enhancing the Rational Use of Energy Act enforcement and supporting the development of advanced energy-saving technologies to support the challenge of carbon neutrality.
- Key players are focused on introducing energy-efficient products into the market because of the advancements mentioned with monitored PDUs and the necessity to reduce electricity consumption as per government measures. In May 2023, Legrand, a significant global provider of electrical and digital building infrastructures, introduced the next generation of intelligent rack PDUs PRO4X and Raritan PX4; these new intelligent rack PDU designs revolutionize capacity planning, environmental monitoring, physical and digital access control, workload optimization, and uptime initiatives.
- In February 2023, ATEN International, the prominent provider of KVM and AVIT connectivity and management solutions, announced the launch of the PG series of 3-phase ecoPDUs, featuring up to 64 PDU units cascaded via network connections, rack power management is made effective with space, monitoring, cost, and connectivity efficiency. These are ideally suited to server rack installations requiring energy-efficient power distribution to high-density IT applications in server rooms or data centers. Such developments in the segment are predicted to boost regional demand during the forecast period.
