Study Of Data Center Water Consumption In Japan Market Size
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 83.59 Billion liters |
| Market Volume (2029) | 115.42 Billion liters |
| CAGR (2024 - 2029) | > 6.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Study Of Data Center Water Consumption In Japan Market Analysis
The Study Of Data Center Water Consumption In Japan Market size is estimated at 83.59 Billion liters in 2024, and is expected to reach 115.42 Billion liters by 2029, at a CAGR of greater than 6.5% during the forecast period (2024-2029).
- IT Load Capacity: The IT load capacity of Japan's colocation data center market is around 1,688.6 MW in 2024.
- Geographical Significance: Japan has four distinct seasons, with a climate ranging from subarctic in the north to subtropical in the south. The Pacific and Sea of Japan sides differ. Northern Japan has warm summers and very cold winters with heavy snow. Eastern Japan has hot, humid summers and cold winters with heavy snow. Western Japan has very hot, humid summers (sometimes reaching 35°C) and moderately cold winters. Okinawa and Amami have a subtropical oceanic climate with hot, humid summers (rarely reaching 35°C) and mild winters. Japan aims for carbon neutrality by 2050 and is actively working to conserve and optimize water usage across all sectors, including data centers.
- Raised Floor Space: Japan's colocation data center raised floor space is about 6.06 million sq. ft in 2024.
- Projected Installed Racks: In 2024, Japan is set to have approximately 241,222 installed racks in its colocation data centers.
Study Of Data Center Water Consumption In Japan Market Trends
Japanese Colocation Facilities See Surge in Demand Driven by AI
- Japan's overall IT capacity as of 2024 is about 1,688.5 MW, and is projected to increase during the forecast period.
- Key players in this market encompass a mix of global and local data center operators, including Equinix Inc, NTT DATA Inc, Digital Realty Trust Inc, NEC Corporation, and IDC Frontier Inc. (SoftBank Group), among others.
- Japan's AI systems market has surged to around $4.5 billion, marking a robust year-on-year growth rate of 35.5%. This growth can be largely attributed to a diverse array of companies in Japan embracing digital transformation (DX) and increasingly integrating AI as a core technology. Furthermore, Japan’s Ministry of Internal Affairs and Communications (MIC) forecasts that the AI systems market in Japan is set to expand to an estimated $7.3 billion by 2027.
- According to government projections, Japan's energy demand is set to rise by 35% to 50% by 2050. This surge is primarily fueled by the growing energy needs of semiconductor factories and data centers that bolster artificial intelligence (AI) operations. Consequently, this heightened demand will render Japan's data centers increasingly water-intensive, resulting in a notable uptick in water consumption.
Japan Sees Surge in Mega Data Center Facilities Amid Ongoing Investments
- Hyperscale tech giants, including Microsoft Corporation, among other data center operators, are bolstering their investments in AI and Japanese data centers, driving heightened demand within the nation.
- In response to Tokyo's drive for enhanced computing power for artificial intelligence, Microsoft is set to make its largest investment in Japan, pouring $2.9 billion into data centers by 2025.
- Amid concerns over domestic data being transferred and stored in overseas data centers, Tokyo is implementing measures to bolster the country's AI computing power. In a related move, Microsoft is set to install advanced AI semiconductors at two of its existing sites located in eastern and western Japan.
- As online shopping platforms gain traction, small businesses are increasingly adopting online payment methods and establishing a digital footprint in the e-commerce landscape. Meanwhile, larger, established companies are seamlessly blending e-commerce with their traditional business models. In 2022, Japan boasted 107.1 million smartphone users. Projections indicate a steady growth, with a CAGR of 1.3%, anticipating the user base to hit 117.77 million by 2029.
Study Of Data Center Water Consumption In Japan Industry Overview
- Five major companies dominate the moderately fragmented Japanese water consumption data center market. Equinix Inc, NTT DATA Inc, Digital Realty Trust Inc,IDC Frontier Inc. (SoftBank Group), and NEC Corporation are at the forefront of this market.
- Equinix is actively pursuing water positivity through various initiatives, such as utilizing fuel cells to conserve billions of gallons of water, harnessing deep lake water cooling, implementing Aquifer Thermal Energy Storage (ATES) alongside free air cooling to cut down power consumption, and more.
- Digital Realty has teamed up with Ecolab, a global frontrunner in water, hygiene, and infection prevention solutions, to roll out a cutting-edge AI-driven water conservation initiative across 35 of its U.S. data centers. The pilot, executed by Nalco Water – Ecolab’s specialized water and process management division – seeks to boost water efficiency at Digital Realty and reduce its environmental footprint. The company is set to implement similar initiatives at its Japanese data centers and others worldwide too.
Study Of Data Center Water Consumption In Japan Market Leaders
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Equinix, Inc.
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Digital Realty Trust Inc.
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NTT DATA, Inc.
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IDC Frontier Inc. (SoftBank Group)
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NEC Corporation
*Disclaimer: Major Players sorted in no particular order
Study Of Data Center Water Consumption In Japan Market News
- May 2023: In Japan, data center providers KDDI and NTT DATA are exploring liquid immersion technology to reduce energy wasted on cooling server hardware.
- July 2024: As ESG considerations gain prominence and the 2040 carbon neutrality target looms, energy efficiency has become paramount for power-hungry data centers. To enhance energy metrics, leveraging advanced technologies and formulating actionable sustainability strategies based on established carbon baselines are essential. Notably, Equinix's TY15, set to debut in Tokyo in September 2024, is an AI-driven data center. It will kick off with 1,200 cabinets and will be powered entirely by renewable energy.
Study Of Data Center Water Consumption In Japan Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions And Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Research Framework
2.2 Secondary Research
2.3 Primary Research
2.4 Data Triangulation and Insight Generation
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.1.1 Japanese Data Centers Adopt Immersion Cooling Techniques to Reduce Water Consumption and Waste
4.2.1.2 Surging Data Traffic and Data Center Demand Driven by Expanding Digitization Efforts
4.2.2 Market Restraints
4.2.2.1 Tackling Water Issues and Aiming for Its Efficient Utilization
4.3 Analysis of the Key Applications Based on the Water Consumption In Data Centers
4.4 Analysis of the Efficiency Benefits Realized With the Use of Water For Cooling in data Centers
4.5 Industry Regulations and Standards Related to Water Consumption
4.6 Case Study Analysis Detailing the Concept of Reuse Water (Greywater Recycling, Rainwater Recycling, Cooling Tower or Heat Exchangers Water Recycling or Evaporative Cooling) in Data Centers
4.7 Key Considerations in Water Scarce Areas
4.8 Key Analysis of Water Treatment Method (Filtration, Reverse Osmosis, Ultraviolet (UV) Disinfection, Chemical Treatment, Softening and Others) Used For Cooling in Data Centers
5. DATA CENTER INDUSTRY OUTLOOK
5.1 Current Market Scenario Data Center Footprint
5.2 Global Breakdown of Data Center Footprint
5.3 Analysis of the Major Hotspots For Dc Investments
6. MARKET SEGMENTATION
6.1 Market Segmentation - By Source of Water Procurement
6.1.1 Potable Water (Via Regional Water Utility Companies, Local Water Authorities or Private Companies)
6.1.2 Non-Potable Water (It Includes greywater (Treated Sewage or Recycled Water)
6.1.3 Other Alternate Source (It includes on-site Groundwater, Surface Water, Seawater, Water produced via a byproduct of oil and gas extraction, and Rainwater)
6.2 Market Segmentation - By Data Center Type
6.2.1 Enterprise
6.2.2 Colocation
6.2.3 Cloud Service Providers (CSPs)
6.3 Market Segmentation - By Data Center Size
6.3.1 Mega
6.3.2 Massive
6.3.3 Large
6.3.4 Medium
6.3.5 Small
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Equinix Inc.
7.1.2 NEC Corporation
7.1.3 NTT DATA, Inc.
7.1.4 Digital Realty Trust Inc.
7.1.5 IDC Frontier Inc. (SoftBank Group)
7.1.6 AirTrunk Operating Pty Ltd
7.1.7 Arteria Networks Corporation
7.1.8 Colt Technology Services Group Limited
7.1.9 Telehouse (KDDI Corporation)
7.1.10 Zenlayer Inc.
- *List Not Exhaustive
8. FUTURE OUTLOOK OF THE MARKET
9. ABOUT US
9.1 Industries Covered
9.2 Illustrative List of Clients in the Industry
9.3 Our Customized Research Capabilities
Study Of Data Center Water Consumption In Japan Industry Segmentation
The study tracks the critical applications of water for running a large data centers, such as DC cooling, and power generation. The study also includes key applications based on the Water Consumption in Data Centers. The study also includes the overall water consumption based on the DC footprint across regions in terms of billion liters. Lastly, the study tracks the underlying trends and developments conceptualized by leading industry data center operators and cloud service providers.
The Study of Data Center Water Consumption in Japan is Segmented by Source of Water Procurement (Potable Water, Non-Potable Water, Other Alternate Sources), by Data Center Type (Enterprise, Colocation, Cloud Service Providers), and by Data Center Size (Mega, Massive, Large, Medium, Small). The Market Sizes and Forecasts are Provided in Terms of Volume (Billion Liters).
| Market Segmentation - By Source of Water Procurement | |
| Potable Water (Via Regional Water Utility Companies, Local Water Authorities or Private Companies) | |
| Non-Potable Water (It Includes greywater (Treated Sewage or Recycled Water) | |
| Other Alternate Source (It includes on-site Groundwater, Surface Water, Seawater, Water produced via a byproduct of oil and gas extraction, and Rainwater) |
| Market Segmentation - By Data Center Type | |
| Enterprise | |
| Colocation | |
| Cloud Service Providers (CSPs) |
| Market Segmentation - By Data Center Size | |
| Mega | |
| Massive | |
| Large | |
| Medium | |
| Small |
Study Of Data Center Water Consumption In Japan Market Research Faqs
How big is the Study Of Data Center Water Consumption In Japan Market?
The Study Of Data Center Water Consumption In Japan Market size is expected to reach 83.59 billion liters in 2024 and grow at a CAGR of greater than 6.5% to reach 115.42 billion liters by 2029.
What is the current Study Of Data Center Water Consumption In Japan Market size?
In 2024, the Study Of Data Center Water Consumption In Japan Market size is expected to reach 83.59 billion liters.
Who are the key players in Study Of Data Center Water Consumption In Japan Market?
Equinix, Inc., Digital Realty Trust Inc., NTT DATA, Inc., IDC Frontier Inc. (SoftBank Group) and NEC Corporation are the major companies operating in the Study Of Data Center Water Consumption In Japan Market.
What years does this Study Of Data Center Water Consumption In Japan Market cover, and what was the market size in 2023?
In 2023, the Study Of Data Center Water Consumption In Japan Market size was estimated at 78.16 billion liters. The report covers the Study Of Data Center Water Consumption In Japan Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Study Of Data Center Water Consumption In Japan Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Study Of Data Center Water Consumption In Japan Industry Report
Statistics for the 2024 Study Of Data Center Water Consumption In Japan market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Study Of Data Center Water Consumption In Japan analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
