Japan was an early adopter of digital infrastructure and has been a leading voice in discussions championing digital transformation in circles as high up as the UN G20. But what does the state of their digital economy look like on the ground?

By many accounts, Japan performs well above its APAC neighbors–it has the second highest region share in fibre connections and currently half of all businesses use cloud computing. But,

as was the case with many countries, the pandemic revealed weaknesses in their connectivity that they’re being quick to address. 

Japan’s digitalisation is decidedly uneven. Transmission speeds are high but so are costs. Sectors like eCommerce have been able to thrive due to the quick adoption of cloud technology, and yet only 7.5% of government administrative procedures can be done entirely online. 

In the last few months, Japan announced a “Digital New Deal” to upgrade the capabilities of their governmental agencies and public services. This initiative would increase investment in the pillars of fintech, AI, infrastructure, logistics, and healthcare, providing an economic stimulus domestically while setting out a blueprint for digital transformation that countries around the world could follow.

On the data center front, however, the country continues to attract investment from big names in colocation, such as Equinix, MC Digital Realty, NEC, NTT, and AT TOKYO, thanks in part to the Internet Initiative Japan instated last year. Japan is expected to see 11% year on year revenue growth in their data center market. Submarine connectivity between Japan-Guam-Australia, and the addition of another cable running throughout South-East Asia, demonstrate Japan’s commitment to and sophistication of its connectivity initiatives.

What work is there still to be done to realise Japan’s full digital potential? Join us at W.Media’s Cloud & Data Center Convention to find out!