Japan Hyperscale Data Center Market

ID: MRFR/ICT/59004-HCR

200 Pages

Aarti Dhapte

September 2025

Japan Hyperscale Data Center Market Research Report By Type (Colocation Data Centers, Cloud Data Centers, Enterprise Data Centers, Managed Data Centers), By Service Type (Infrastructure as a Service, Platform as a Service, Software as a Service), By End User (IT Services, Telecommunications, Web Services, Financial Services, Healthcare) and By Cooling Technology (Air-based Cooling, Liquid Cooling, Evaporative Cooling)- Forecast to 2035

Japan Hyperscale Data Center Market Infographic

Single User

$ 4,950.0

Multiple License

$ 5,950.0

Enterprise User

$ 7,250.0

Summary Table of Contents Segmentation Infographic

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

Customize Report

Certified Researchers

Japan Hyperscale Data Center Market Summary

The Japan Hyperscale Data Center market is projected to grow from 1.55 USD billion in 2024 to 5.8 USD billion by 2035.

Key Market Trends & Highlights

Japan Hyperscale Data Center Key Trends and Highlights

The market is expected to experience a compound annual growth rate of 12.75 percent from 2025 to 2035.
By 2035, the market valuation is anticipated to reach 5.8 USD billion, indicating robust growth potential.
In 2024, the market is valued at 1.55 USD billion, reflecting the increasing demand for data center services in Japan.
Growing adoption of cloud computing due to the rising need for scalable IT infrastructure is a major market driver.

Japan Hyperscale Data Center Market

CAGR

12.75%

Market Size & Forecast

2024 Market Size	1.55 (USD Billion)
2035 Market Size	5.8 (USD Billion)
CAGR (2025-2035)	12.75%

Major Players

Digital Realty, Vantage Data Centers, Google Cloud, Mitsubishi, SoftBank Group, Microsoft, Alibaba Cloud, Fujitsu, NTT Communications, Equinix, IBM, Telehouse, Amazon Web Services

Japan Hyperscale Data Center Market Trends

The growing need for cloud services and the digital transformation of numerous industries are driving significant developments in the Japanese hyperscale data center industry. Scalable and effective data storage solutions are becoming more and more necessary as businesses embrace cutting-edge technology like artificial intelligence and the Internet of Things. Businesses are being compelled by the rise in data consumption to look for hyperscale data center solutions that can efficiently support their operations and expansion. Furthermore, investments in energy-efficient data centers are being driven by Japan's dedication to sustainability.

Additionally, Japan's advantageous position in Asia makes it a desirable location for data centers, offering access to a wide range of global markets.Data center ecosystem development has been aided in recent years by partnerships between municipal governments and technology companies. These collaborations support infrastructure investment and make it easier to build cutting-edge facilities. Additionally, as companies look to meet regulatory requirements, the growing emphasis on data localization rules promotes the expansion of domestic data centers. The hyperscale data center business in Japan is adjusting to these major themes and paving the way for future development and growth.

Market Segment Insights

Hyperscale Data Center Market Type Insights

The Japan Hyperscale Data Center Market is experiencing notable expansion driven by an increasing demand for efficient data management and processing capabilities. The Type segment, encompassing various categories such as Colocation Data Centers, Cloud Data Centers, Enterprise Data Centers, and Managed Data Centers, plays a crucial role in shaping the landscape of this market. Colocation Data Centers are significant as they provide businesses the flexibility to house their servers and storage solutions alongside other companies, facilitating cost-sharing among participants while maintaining robust security measures.

This model aligns well with Japan's growing trend towards shared resources, especially in urban areas where physical space is limited. Cloud Data Centers are dominating the landscape due to their ability to offer scalable resources that can adapt to fluctuating workloads, an essential feature in today’s fast-paced business environment. With the government's initiatives to enhance digital transformation and support innovative technologies such as 5G, this segment is positioned to capture a substantial customer base seeking on-demand computing power and storage solutions.

Enterprise Data Centers, traditionally owned by businesses, are also significant as companies strive for autonomy over their data. However, as the demand for flexibility grows, many enterprises are transitioning towards hybrid models that involve a mix of on-premise and cloud-based resources. This shift supports the notion that businesses are increasingly seeing the value of integrated solutions that leverage both private and public clouds, thus expanding their operational capabilities.

Managed Data Centers provide a comprehensive service that includes management of infrastructure, security, and connectivity, making them appealing to organizations without extensive IT resources. This trend is particularly relevant in Japan, where several companies are looking to outsource their data management needs, allowing them to focus on core business functions instead of IT complexities. The ongoing digitalization trends fueled by the government’s focus on technology adoption continue to further drive growth in this segment, as more businesses recognize the potential efficiencies and competitive advantages offered by outsourcing data center operations.

Overall, all these types within the Japan Hyperscale Data Center Market collectively reflect the dynamic nature of the industry, where technological advancements and shifting business models create opportunities for growth and innovation. The interplay between these segments illustrates a broader trend toward more agile, cost-effective, and secure data management solutions that align with both current market demands and future directives within the region, highlighting the critical importance of this market in Japan's economic framework.

Hyperscale Data Center Market Service Type Insights

The Japan Hyperscale Data Center Market is characterized by its diverse offerings in the Service Type segment, particularly focusing on Infrastructure as a Service, Platform as a Service, and Software as a Service. With the increasing demand for cloud computing and efficient data management solutions, these services are gaining significant traction among businesses across various sectors within Japan.

Infrastructure as a Service plays a crucial role by providing scalable resources which help enterprises reduce capital expenditure and enhance operational efficiency.Meanwhile, Platform as a Service is becoming increasingly important as it offers a robust environment for developing, testing, and deploying applications, catering to the growing number of startups and tech companies in the country.

Lastly, Software as a Service is on the rise, delivering essential applications over the internet, simplifying integration while improving accessibility for users. This expansion in the Service Type segment is driven largely by the need for digital transformation strategies among Japanese enterprises, alongside government initiatives promoting technological advancement and innovation within the Japan Hyperscale Data Center Market.Consistently, the industry is witnessing a shift towards flexible and cost-effective solutions, aligning with global technology trends while providing substantial growth opportunities for providers operating within the region.

Hyperscale Data Center Market End User Insights

The End User segment of the Japan Hyperscale Data Center Market plays a pivotal role in driving industry growth and innovation. With the increasing digitalization across various sectors, IT Services are becoming essential for businesses, facilitating cloud computing and data analytics. Telecommunications companies are also significant, as they necessitate vast data capacity to support high-speed connectivity and 5G deployment, which is on the rise in Japan.

Web Services show robust demand due to the proliferation of online platforms and e-commerce activities, contributing significantly to market dynamics.Financial Services rely on hyperscale data centers for their security, data processing, and rapid transaction handling, making them a crucial sector within this market.

Additionally, the Healthcare industry is increasingly adopting advanced data storage solutions to manage vast volumes of patient data and enable telehealth services, marking its growing significance. Each of these sectors not only represents a substantial demand for data storage and processing capabilities but also emphasizes the importance of compliance and security in data management as they navigate stringent regulations in Japan.Collectively, these sectors highlight the diverse applications and opportunities present within the Japan Hyperscale Data Center Market, revealing a landscape ripe for continued development and investment.

Hyperscale Data Center Market Cooling Technology Insights

The Cooling Technology segment within the Japan Hyperscale Data Center Market is crucial for maintaining optimal operating conditions and ensuring system reliability in data centers. As organizations in Japan increasingly adopt cloud computing and advanced technologies, the demand for efficient cooling solutions is on the rise. Air-based Cooling is widely utilized due to its ease of implementation and lower initial costs, making it a popular choice among data center operators. However, Liquid Cooling is gaining traction for its superior efficiency and ability to handle high-density server configurations, which is essential for maximizing energy performance.

Additionally, Evaporative Cooling solutions are becoming significant as they offer energy savings and sustainable operation, especially in regions where water resources are managed effectively. Together, these technologies help address challenges like rising energy costs and environmental regulations while enhancing the Japan Hyperscale Data Center Market efficiency. Overall, the integration of advanced cooling strategies plays a pivotal role in future-proofing the infrastructure of Japan's hyperscale data centers, aligning with the growing demand for scalable and sustainable computing resources.

Get more detailed insights about Japan Hyperscale Data Center Market Research Report - Forecast to 2035

Request Free Sample

Key Players and Competitive Insights

The Japan Hyperscale Data Center Market is a dynamic and rapidly evolving sector characterized by significant investments and developments aimed at accommodating the increasing demand for cloud services and data storage. The competitive landscape is marked by the presence of several key players who are leveraging advanced technologies and strategic partnerships to enhance their offerings and capture a larger market share. As businesses increasingly migrate to digital platforms, the demand for hyperscale data centers, which can support large amounts of data and power-intensive applications, has surged in Japan.

The country's strategic location, robust infrastructure, and strong regulatory framework further bolster its potential as a leading hub for data center operations in the Asia-Pacific region.

Digital Realty has established itself as a formidable player in the Japan Hyperscale Data Center Market. The company is known for its extensive experience and expertise in the data center domain, enabling it to deliver high-performance solutions tailored to meet the specific needs of its clients. By strategically acquiring assets and partnering with local firms, Digital Realty has cultivated a strong market presence in Japan, allowing it to effectively cater to both international and domestic companies.

The company's strengths lie in its ability to provide scalable and customizable solutions, robust security measures, and a commitment to sustainability, which resonates well with customers focused on environmental responsibility. Furthermore, Digital Realty's global network enhances its capability to drive cross-border collaboration and innovation within the hyperscale data center segment.

Vantage Data Centers has also made significant strides in the Japan Hyperscale Data Center Market, positioning itself as a reliable provider of critical infrastructure solutions. The company focuses on building and operating data centers that offer high-density solutions and energy efficiency, essential traits for hyperscale operations. Vantage Data Centers is known for its key services that include colocation, cloud connectivity, and hybrid infrastructure solutions, providing clients with the flexibility and scalability required in today's data-driven world.

The company's presence in Japan is bolstered by its investment in advanced technology and customer-centric designs, which have proven to be attractive for large enterprises and cloud service providers. In recent years, Vantage has engaged in strategic mergers and acquisitions aimed at strengthening its foothold in the Japanese market, further enhancing its capabilities and service offerings. This proactive approach allows Vantage Data Centers to maintain its competitive edge and address the growing demand for hyperscale data solutions in the region.

Key Companies in the Japan Hyperscale Data Center Market market include

Industry Developments

In recent months, the Japan Hyperscale Data Center Market has seen significant developments with key players expanding their operations. Digital Realty announced the construction of a new data center in Tokyo in September 2023, aimed at meeting the rising demand for cloud services. On April 9, 2024, Microsoft declared that it would invest $2.9 billion over two years to greatly increase the size of its AI and cloud infrastructure in Japan. This entails upskilling 3 million Japanese workers in AI technologies, opening a Microsoft Research Asia lab in Tokyo, and integrating cutting-edge AI semiconductors into already-existing data centers.

This is Microsoft's biggest investment in the nation and highlights the growing need for hyperscale-capable computing to handle workloads related to artificial intelligence. Concerned about groundwater depletion, pollution, tree loss, and disturbance of animals, more than 220 citizens of Akishima city (Tokyo region) petitioned on July 10, 2024, to stop the construction of a large 3.63 MW data center by Singapore-based developer GLP. The project, which is expected to begin in February 2024 and be finished by early 2029, demonstrates growing local and regulatory opposition in the face of Japan's quick hyperscale growth.

Market Segmentation

Hyperscale Data Center Market Type Outlook

Colocation Data Centers
Cloud Data Centers
Enterprise Data Centers
Managed Data Centers

Hyperscale Data Center Market End User Outlook

IT Services
Telecommunications
Web Services
Financial Services
Healthcare

Hyperscale Data Center Market Service Type Outlook

Infrastructure as a Service
Platform as a Service
Software as a Service

Hyperscale Data Center Market Cooling Technology Outlook

Air-based Cooling
Liquid Cooling
Evaporative Cooling

Report Scope

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	1.46(USD Billion)
MARKET SIZE 2024	1.55(USD Billion)
MARKET SIZE 2035	5.8(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	12.746% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Digital Realty, Vantage Data Centers, Google Cloud, Mitsubishi, SoftBank Group, Microsoft, Alibaba Cloud, Fujitsu, NTT Communications, Equinix, IBM, Nowhere Data Centers, Telehouse, Amazon Web Services
SEGMENTS COVERED	Type, Service Type, End User, Cooling Technology
KEY MARKET OPPORTUNITIES	Increased cloud adoption, 5G and IoT expansion, Renewable energy integration, Government support and incentives, Strategic location for Asian markets
KEY MARKET DYNAMICS	Growing demand for cloud services, Increasing investments in AI, Rising data consumption rates, Government support for tech infrastructure, Need for energy-efficient solutions
COUNTRIES COVERED	Japan

FAQs

What is the estimated market value of the Japan Hyperscale Data Center Market in 2024?

The Japan Hyperscale Data Center Market is expected to be valued at 1.55 billion USD in 2024.

What will the market value of the Japan Hyperscale Data Center Market be by 2035?

By 2035, the Japan Hyperscale Data Center Market is projected to reach a value of 5.8 billion USD.

What is the expected compound annual growth rate (CAGR) for the Japan Hyperscale Data Center Market from 2025 to 2035?

The expected CAGR for the Japan Hyperscale Data Center Market from 2025 to 2035 is 12.746%.

Which type of data center is expected to dominate the market share in Japan by 2035?

Colocation Data Centers are projected to dominate the market share in Japan, reaching 2.35 billion USD by 2035.

What is the market value for Cloud Data Centers in Japan in 2024 and 2035?

Cloud Data Centers are estimated to be valued at 0.48 billion USD in 2024 and expected to grow to 1.84 billion USD by 2035.

Who are the key players in the Japan Hyperscale Data Center Market?

Key players include Digital Realty, Vantage Data Centers, Google Cloud, Mitsubishi, SoftBank Group, and Microsoft.

What will the market size for Managed Data Centers be in Japan by 2035?

Managed Data Centers are expected to achieve a market size of 0.7 billion USD in Japan by 2035.

What are the primary growth drivers for the Japan Hyperscale Data Center Market?

The primary growth drivers include the increasing demand for cloud services and digital transformation across industries.

How is the market for Enterprise Data Centers expected to change by 2035?

The market for Enterprise Data Centers is projected to grow from 0.28 billion USD in 2024 to 1.09 billion USD by 2035.

What challenges does the Japan Hyperscale Data Center Market face amid current global scenarios?

Challenges include maintaining operational efficiency and addressing energy consumption and sustainability concerns in data centers.

Japan Hyperscale Data Center Market Research Report - Forecast to 2035 Infographic

Free Sample Request

Kindly complete the form below to receive a free sample of this Report

Customer Stories

“I am very pleased with how market segments have been defined in a relevant way for my purposes (such as "Portable Freezers & refrigerators" and "last-mile"). In general the report is well structured. Thanks very much for your efforts.”

Victoria Milne Founder

Case Study

Chemicals and Materials

Global Magnesium Sulfate Market – Forecast till 2027