Data Centers in Japan

Japan – Premier Hub for APAC Digital Infrastructure

Japan stands as a top-tier global market for data center colocation, offering exceptional connectivity and a mature, stable ecosystem. It is the premier choice for enterprises requiring low-latency access to East Asian markets and resilient infrastructure for mission-critical applications. The country's dense network fabric and direct cloud access ensure high-performance delivery of services across the region.

Japan: At A Glance

Network & Connectivity Ecosystem

Japan's connectivity is among the best in the world, characterized by a dense, competitive, and highly reliable network environment.

Carrier Density & Carrier Neutrality With over 70 unique network providers active in the market as of September 2025, Japan offers extensive choice. Carrier-neutral facilities in Tokyo and Osaka provide access to this rich ecosystem, allowing businesses to optimize for cost, performance, and redundancy.

Direct Cloud On-Ramps The country features 19 dedicated cloud on-ramps providing direct, private access to 12 distinct cloud regions as of September 2025. This enables secure, high-throughput hybrid cloud architectures with major providers, including:

• Alibaba Cloud
• AWS
• Google Cloud (GCP)
• IBM Cloud
• Microsoft Azure
• Oracle Cloud

Internet Exchange Points (IXPs) Japan hosts some of Asia's most significant IXPs, including JPIX and BBIX. These exchanges are critical for efficient traffic peering, reducing latency for domestic users and improving network performance for international content delivery.

Bare Metal Bare metal server capacity is readily available from multiple providers. Companies like Hivelocity offer dedicated server solutions, enabling businesses to deploy high-performance computing without the overhead of a virtualization layer.

Power Analysis

Average Cost Of Power Industrial power costs typically range from ¥18.50 to ¥22.00/kWh as of September 2025. While not the cheapest in the region, the price reflects a highly stable and reliable grid, which is essential for maintaining uptime. Japan's power mix is approximately 73% fossil fuels, 21% renewables, and 6% nuclear energy.

Power Grid Reliability The national power grid is exceptionally reliable, particularly in the major metropolitan areas of Tokyo and Osaka where most data centers are located. The infrastructure is well-engineered with significant redundancy and support from multiple substations to ensure consistent power delivery for critical operations.

Market Access, Business & Tax Climate

Japan provides a stable business environment and strategic access to key Asian markets.

Proximity To Key Business Districts Data centers are concentrated around Tokyo and Osaka, providing low-latency connectivity to the country's primary financial, technological, and commercial hubs. This proximity is critical for financial services, content delivery networks, and cloud service providers that depend on minimal delay.

Regional Market Reach From Japan, businesses can effectively serve the entire North Asian market, including South Korea and Taiwan. Its position as a major landing point for trans-Pacific submarine cables also makes it an ideal network hub for connecting North America with Asia.

Tax Advantage For Data Centers The Japanese government offers a subsidy program to encourage the development of data centers in regional areas outside of the Tokyo concentration zone. This initiative helps lower capital expenditures for new builds and promotes geographic diversity for disaster recovery purposes.

Natural Disaster Risk

Japan has a "Very Low" overall risk profile with a score of 2.1 out of 10 as of September 2025. This low score is due to the country's world-class infrastructure, strict building codes, and exceptional institutional capacity to manage and recover from events.

However, the country has high exposure to several specific natural hazards. Site selection and infrastructure design must account for the following high-scoring risks:

• Tsunami: 10/10
• Earthquake: 9.7/10
• Coastal Flood: 9.4/10
• Tropical Cyclone: 9.2/10
• River Flood: 7.8/10