Datadog, an observability service for cloud-scale applications, has announced the launch of its new data center located in Tokyo, Japan. The data center is Datadog’s first in Asia and adds to existing locations in the United States, Europe and AWS GovCloud.
The new data center in Japan will store and process data locally and help Datadog and its customers comply with local data privacy and security regulations. All existing Datadog products will be available with the new data center.
According to Amit Agarwal, President at Datadog, their customers in Japan are undergoing rapid digital transformation and they are going to provide them the same service they provide in other regions, while also complying with local regulations.
Japan continues to be recognized as a leader in digital transformation and data driven businesses, and the pace of change has only accelerated since the global pandemic; the Japan IoT (Internet of things) market is expected to grow at a CAGR of 23.0% (2017-27) while edge AI applications in Japan are witnessing a CAGR of 20.03% (2021-30).
The Tokyo data center market is valued at USD $2.2bn (as of 2021) but despite growing demand, land for data center development in the dense, downtown area of Tokyo is limited, making retail colocation space in a central location highly sought after by network, cloud, and enterprise customers.
In line with the growing data center demand in Tokyo, in the 1st quarter of 2023, two data center players have entered the region.
In January, Stack Infrastructure constructed a 36MW data center campus located in Inzai, an area of Tokyo that has seen significant hyperscale data center growth. The company is expanding its portfolio in Japan, launching a deep commitment to future investments in the APAC region.
In March, Digital Edge announced it has entered into a partnership with Hulic, a leading Japanese real estate developer, to develop a carrier neutral data center facility named ‘TYO7” in downtown Tokyo, Japan.