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Northeast Asia News

Japan to Remain One of the Most Attractive Data Center Substation Markets in Asia

Japan is predicted to remain one of the most attractive data center substation markets in Asia as it is estimated to account for nearly 3.4% of the global data center substation industry in 2033, according to the recent report of Future Market Insights.

The report stated that the data center substation market revenue totaled US$10.4 billion in 2023. The adoption of data center substations is likely to expand at a healthy 6.5% CAGR, pushing the market valuation to US$19.6 billion in 2023

Growing demand for data storage and processing due to advanced technologies such as artificial intelligence, machine learning, and the Internet of Things (IoT) is projected to fuel growth opportunities in the data center substation market.

Moreover, the push toward sustainable and green energy sources driving the adoption of renewable energy solutions including wind and solar power are also creating opportunities for the data center substation market.

In Japan, the key factors increasing the demand for data centers substation include the increasing high-speed internet penetration, growing adoption of local data security, an the government regulations for local data security

According to the report, numerous players are investing in data center infrastructure in Japan either by building their own data centers or acquiring large wholesale space within global data center service providers. These include financial services firms, IT companies, and global multimedia and content providers, which are expected to continue fueling sales over the forecast period.

In the Q1 of 2023, various data center players have announced their plans to build and expand their portfolio in the country.

Stack Infrastructure constructed a 36MW data center campus located in Inzai as part of its plans to expand its portfolio in Japan, launching a deep commitment to future investments in the APAC region.

Some players have also announced their plans to construct their additional facilities. OPTAGE announced plans to build its fifth data center in Osaka and MC Digital Realty, a 50/50 joint venture between Mitsubishi Corporation and Digital Realty, also announced the official opening of its fourth building on its Osaka data center campus.

In the same city, Osaka Keihanna, Colt Data Centre Services (Colt DCS) launched a major data center which marks the company’s expansion strategy.

Moreover, Digital Edge has entered into a partnership with Hulic, a leading Japanese real estate developer, to develop a carrier neutral data center facility in downtown Tokyo

 

Publish on W.Media
  • May 5, 2023
Author Info - W.Media
Hazel Moises
Hazel Moises
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