Cushman & Wakefield‘s latest Global Data Center Market Comparison report reveals Japan’s dominance in the Asia Pacific (APAC) region, with Tokyo emerging as a frontrunner among established markets. The report highlights Tokyo’s notable ascent to third place globally, trailing only Virginia and Atlanta, in the Established markets category.
Despite challenges related to land availability and power infrastructure, established markets like Singapore, Beijing, Shanghai, Hong Kong, Sydney, and Tokyo have sustained their growth trajectory. The increasing presence of hyperscalers in the region has fueled transaction activity, particularly in emerging markets such as Bangkok, Johor, Hyderabad, Ho Chi Minh, and Manila.
Tokyo’s Rise to Prominence
Tokyo’s ascent as Asia’s leading data center market is significantly fueled by the influx of data center players constructing facilities in the city.
In the first quarter of 2024, multiple data center players have already announced plans for data center development in Japan, particularly in Tokyo. This includes NTT Global Data Centers, AirTrunk, Amazon Web Services (AWS), Yondr Group in partnership with Marubeni Corporation, and Digital Realty’s Second Data Center, GDS and Gaw Capital Partners’ collaboration to construct a 40-megawatt (MW) data center campus, and ST Telemedia Global Data Centres (STT GDC)’s commencement of construction for its second data center facility.
Moreover, Microsoft also announced a significant investment of US$2.9 billion over the next two years to bolster its hyperscale cloud computing and AI infrastructure in Japan.
This trend underscores Tokyo’s appeal due to its robust infrastructure, strategic location, and stable business environment. The growing presence of hyperscale cloud providers and colocation operators reflects confidence in Tokyo’s market potential, fostering a competitive environment and driving innovation within the data center ecosystem.
Japan holds a significant position as one of the world’s largest Tier 1 data center markets, with ongoing developments totaling over 3,000 MW of IT load. As Tokyo continues to attract more data center investments, its position as a key hub in the Asia Pacific region is set to solidify further.
