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Japan Data Center Market - Investment Analysis and Growth Opportunities 2020-2025

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Last updated: 1 Jun 2020 Update History

Report Pages: 94

Partner Publisher: Arizton Advisory and Intelligence

Analyst: Faizan Akhtar

Executive Summary

Cloud Computing to Boost Growth in Data Center Market in Japan

The cloud services market in Japan is estimated at around $6 billion in 2020, which is likely to grow at a CAGR of around 15% during the period 2019-2025. Japan has the presence of major cloud service providers such as Amazon Web Services, Microsoft, Google, and IBM. Connectivity to cloud service providers has become a significant factor when selecting a colocation provider in Japan.

Submarine cable projects have been increased in the region to attract more data center operations and investors. In 2020, the submarine cable projects like Southeast Asia-Japan Cable 2 (SJC2), JUPITER, Japan-Guam-Australia North (JGA-N), and Okinawa Cellular Cable would connect Japan with the US, China, Taiwan, Hong Kong, Thailand, and Singapore.

What is the Impact of the Current COVID-19 Pandemic in the Japan Market?

In Japan, construction projects are not completely halted due to COVID-19. Data center operations in Japan are carried on without any disruption by taking precautionary measures to ensure safety for employees. The impact of operations is expected to range between low and moderate.

What are the Key Factors Attracting Investments in Japan?

Japan attracted a majority of the investment from colocation service providers such as Equinix, MC Digital Realty, NEC, NTT, AT TOKYO and via the Internet Initiative Japan in 2019 and 2020. In 2019, Mitsubishi Corporation and MC Digital Realty reached an agreement to acquire about 20,000 square meter land in Inzai-city to open Tokyo 2 data center facility. Google’s new submarine cable project, connecting Japan-Guam-Australia, is a 9,500 km fiber-optic cable project that is likely to be operational by 2020, delivering 36 Tbps capacity. The country plans to increase its renewable power by 24% by 2030. Solar power plants have contributed more renewable energy generation. In 2020, the Southeast Asia-Japan 2 cable (SJC2) a major submarine project in the SEA region that connects Singapore, Thailand, Cambodia, Vietnam, Hong Kong, Taiwan, Mainland China, and Korea is to be completed.

What Business Intelligence does this Report Provide?

The report provides Japan data center investments in terms of area (square feet) and power capacity (MW) in major cities in the country. An in-depth analysis of the impact of the COVID-19 on the Japan data center market is included in the report.

Furthermore, the report also includes a detailed analysis of the colocation industry in Japan, and retail & wholesale colocation pricing in Japan.

A detailed study of the existing market landscape, an in-depth industry analysis, and insightful predictions about the Japan data center market size during 2020-2025, is included in this exclusive report.

The report further categorizes the Japan data center market into multiple segments and sub-segments with sizing and forecast. The report also profiles prominent investors, construction contractors, and infrastructure vendors in the Japan data center market.

Key Developments

  • The high usage of services such as cloud storage services among businesses across the region will increase the demand for high-performance storage solutions.
  • The development of hyperscale and cloud data centers is likely to drive the demand for ethernet switches and routers.
  • The market will witness a rise in the adoption of NVME SSD storage as part of flash-storage adoption for critical application.
  • Diesel generators are likely to dominate the Japan data center power market with new facilities likely to deploy a mix of diesel and gas generators.
  • Modular data center deployments will include low-voltage switchgear as they are economical and efficient.
  • 42U rack units are the most commonly used in data centers, and it is expected to dominate the region during the forecast period along with the adoption of 45U-47U rack units.
  • Japan is witnessing an increase in the construction of greenfield projects, with a strong potential for modular data center projects.

Key Companies Mentioned in this Report Include

IT Infrastructure Providers – Inspur, NEC Corporation, Hewlett Packard Enterprise, Cisco, NetApp, Huawei, Fujitsu, Hitachi, IBM, Lenovo

Construction Service Providers - Obayashi Corporation, Kajima Corporation, Marcai Design, Shinryo, Keihanshin Building, Hibiya Engineering, Meiho Facility Works, NTT Facilities, Fuji Furukawa Engineering & Construction, ISG

Support Infrastructure Providers – ABB, Caterpillar, Cummins, Eaton, Legrand, Schneider Electric, Vertiv, Hitec-Power Protection, Rittal, MTU Onsite Energy, Mitsubishi Electric, Kohler, Fuji Electric

Data Center Investors - Equinix, MC Digital Realty, Equinix, GIC, NTT Communications, Colt DCS, AT TOKYO Corporation, Internet Initiative Japan, NEC Corporation

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