data center blogs

Cloud adoption and cultural shifts influence the Japanese Hyperscale market

06 Sep 2021

Organisations looking to expand their global IT footprint need to consider the Japanese hyperscale data centre market - a frontier for fresh audiences, investment and opportunities.

Japan has become a strong, reliable source of customer growth. For those looking to partner with a hyperscale data centre provider in this market, the opportunities available are becoming more appealing, and a fact that competitive businesses can’t afford to ignore.


Cloud adoption and cultural shifts

In recent years, Japan has experienced exponential growth in demand for digital services. The widespread adoption of cloud technology and advent of 5G has seen demand for online gaming, streaming and fintech services soar.

However, this has not always been the case. In comparison to Singapore and Hong Kong, Japan has previously been slower to shift towards the cloud as local cultures have been conservative to adopt a new technology before its potential has been proven. But in recent years, with the option of ‘flexible scalability’ and 'no maintenance teams' emerging alongside an increase in remote working fueled by the global pandemic, many businesses have evolved and now are seeing the benefits.

In the consumer space, there has also been a growing acceptance of cloud technology due to the increasing number of essential cloud-based services and apps. This is being boosted by a wider acceptance of corporate outsourcing that depends on cloud technology and hosting strategies supported by the big cloud service provides within the region.

To support Japan’s digital transformation, Colt DCS is rapidly expanding its hyperscale data centre portfolio in the Tokyo and Osaka areas. The newest facility being the Osaka Keihanna site which celebrated its ground-breaking ceremony on the 30th of August and expected to be completed for service by 2023. On completion, the site will deliver 45MW of IT power on a 1.6-hectare site, with an operating power density of 3 kW/sqm. Osaka Keihanna will provide carrier-neutral data centre services, and serve as a disaster recovery site not only to enterprise companies in the Kansai region but also to hyperscalers in the Tokyo area.

Colt DCS is already serving  the local market with their Tokyo Inzai Campus, consisting of three hyperscale data centres located on one estate, and boasting a total of 53 MW of IT power across 17,000m² of floor space. 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.

Furthermore, in July 2021, Colt DCS was awarded Company of the Year for its Japanese data centre services by US industry excellence firm, Frost & Sullivan. Colt DCS have also 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 140 MW in Japan.


Sustainability is key for the future of hyperscale data centres

With the development of advanced technologies such as AI, IoT, and VR, hyperscale data centres are  required to store, process, and transmit large amounts of data at high speed. In doing so, this requires a huge amount of power.

In recent years, awareness about sustainable operations and processes from Japanese customers have also changed, with the number of questions regarding data centre CO2 emissions increasingly being asked about during proposal request. In particular, customers with large hyperscale data centre requirements are highly aware about the importance of reducing carbon footprint when partnering with providers.

In relation to this, Colt DCS has been adopting a sustainable program for a number of years with the objective in achieving its own, as well as it customer’s sustainable development goals.

Having recently appointing a sustainability director at the business, in Europe, Colt DCS is now using 100% renewable energy to power all of its hyperscale data centres. Where possible, Colt DCS aims to use a significant proportion of renewable energy to power sites across Japan and the APAC region. Sustainability remains at the forefront of its operations, from more ‘greener’ hyperscale data centre designs, developments, and overall operational procedures to be considered as the most customer centric data centre provider.

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