Japan’s growth driven by national digital transformation
The demand for data centre requirements in Japan is skyrocketing. In fiscal year 2021, the Japanese data centre market was valued at 1.58 trillion Japanese yen. Projected to increase steadily in the coming years, it is expected to grow by over 41% and reach a value of 2.24 trillion yen by fiscal year 2027.
This exponential growth is being driven by a national digital transformation. The widespread adoption of cloud technology and advent of 5G has seen demand for online gaming, streaming and fintech services soar. In addition, Japanese businesses have digitalised their IT infrastructures to serve employees with flexible and remote working options fueled by the global pandemic.
Tokyo and Osaka
In particular, two key markets that are attracting major investment and are contributing significantly to Japan’s projected data centre market growth is Tokyo and Osaka.
The capital city of Tokyo has a population of 14 million people. Spread across 4 prefectures, the greater metropolitan area of Tokyo is estimated to have a population to be over 36 million, and is considered the most populated metropolitan area in the world.
Similarly, the city of Osaka has a population of almost 3 million people. Being the capital within the Osaka prefecture, the city of Osaka is part of Japan’s second largest metropolitan area, Keihanna which consists of a population estimated over 19 million.
With both location’s enormous populations, an appetite for greater connectivity is present as more people within these markets desire internet services with high bandwidth and low latency requirements.
Tokyo and Osaka are major business locations for data heavy industry segments including manufacturing, wholesale & retail, healthcare, and financial services. All of these industries are experiencing significant growth from the eight latest and most influential emerging technologies including artificial intelligence (AI), augmented reality (AR), blockchain, drones, the Internet of Things (IoT), robotics, 3D printing and virtual reality (VR). Therefore, demand exists for organisations in these markets to house their developing digital infrastructures in a secure environment that allows for scale.
Power and land
One of the biggest challenges for Japanese data center operators is sourcing sufficient power and land. Traditionally, Tokyo city has been the prime location for data centre operators to build their facilities. However in more recent years, there has been a shift towards sites being built across surrounding Tokyo suburbs, with the wider Osaka area also experiencing a growth in data centre builds due to more investment in local fiber-optic infrastructures and improved power distribution to satisfy rising demand. As a result, both are extending locations where currently power and land is not an issue.
To support Japan’s digital transformation, Colt DCS is rapidly expanding its hyperscale data centre portfolio in Tokyo and Osaka.
Colt Tokyo Inzai Campus
Consisting of three hyperscale data centres located on one estate, our Colt Tokyo Inzai Campus is one of the largest data centre facilities to have been built in Japan. Offering a total of 53MW of IT power across 17,000m², this campus offers clients the most dynamic and cutting-edge services to support their IT infrastructural needs.
Colt Tokyo Inzai Three, the third and newest building on the campus was launched in November 2020. Built to satisfy the growing demand for cloud-based solutions in the Japanese market, this site alone offers 27MW of IT power across 8,000m², and is designed to an annual PUE of <1.40.
With over 15MW already fitted internally, Colt DCS is working with its experienced operational team and partners to fit-out the remaining 12MW, with the majority of this going to one of the world’s largest cloud service providers. Expected to be ready by Q4 this year, the remaining fit-out will bring Colt Tokyo Inzai Three to over 90% full tenant capacity.
Colt Osaka Keihanna
With construction fully underway, our Colt Osaka Keihanna data centre will be the latest addition to our growing Japanese hyperscale portfolio.
Scheduled for completion by the end of this year, our Osaka Keihanna site will deliver 45MW of IT power across 42,000m².
“The demand we are seeing within the Japanese market is unlike ever before. Hyperscale, and the scalability and agility it provides, will be essential to foster such widescale growth and we are thrilled to be supporting businesses and cloud service providers in the region with the services they require.”
Furthermore, to demonstrate Colt DCS’s commitment to supporting Japan’s digital transformation, last year it announced that its owner, Fidelity had entered into a joint venture agreement with Mitsui & Co, and Mitsui & Co Asset Management Holdings, to provide state-of-the-art hyperscale data centres in Japan. This enormous joint venture will allow Colt DCS to triple its existing build to 140MW in Japan.
To find out more about our Japanese data centre portfolio, visit our Asia locations map.
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