Data Centers in Japan

Japan – Premier Asia-Pacific Connectivity Hub

Japan is the primary colocation and interconnection market for businesses requiring low-latency access to East Asia's economy. Its advanced, resilient infrastructure ensures high uptime and rapid content delivery, directly supporting mission-critical operations and user experience for multinational corporations. The country's blend of high carrier density and direct cloud access makes it a cornerstone of any digital strategy in the region.

Japan: At A Glance

Network & Connectivity Ecosystem

Japan's network ecosystem is one of the most developed in the world, offering exceptional performance for businesses serving the Asia-Pacific region.

Carrier Density & Carrier Neutrality: With over 70 unique network providers available as of September 2025, Japan offers a competitive and diverse marketplace. Carrier-neutral facilities in Tokyo and Osaka provide extensive options for creating resilient, multi-homed network architectures.

Direct Cloud On-Ramps: The market features over 19 dedicated cloud on-ramps providing direct, private access to 12 distinct cloud regions as of September 2025. Major hyperscalers with a physical presence include Alibaba Cloud, AWS, Google Cloud (GCP), IBM Cloud, Microsoft Azure, and Oracle Cloud.

Internet Exchange Points (IXPs): Major exchanges like JPIX and BBIX are central to the country's internet fabric, enabling efficient and low-latency traffic peering between networks. This dense interconnection minimizes reliance on transit providers for domestic traffic.

Bare Metal: On-demand bare metal servers are widely available from multiple providers. Global suppliers like Hivelocity and phoenixNAP offer compute and storage solutions for workloads requiring dedicated physical hardware.

Power Analysis

Average Cost Of Power: Industrial power costs are estimated between ¥20.00 - ¥24.00/kWh as of September 2025. This pricing is competitive for a major global market, allowing for predictable operational spending on high-density deployments.

Power Grid Reliability: Japan's power grid is exceptionally reliable, particularly in the major data center hubs of Tokyo and Osaka. The infrastructure is well-engineered, with significant redundancy and multi-substation support common for colocation facilities, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are heavily concentrated in the Tokyo and Osaka metro areas. These locations offer direct, low-latency connectivity to Japan's primary financial, technology, manufacturing, and media industries.

Regional Market Reach: Japan serves as a strategic digital gateway for Northeast Asia. Its location and superior network infrastructure provide effective, low-latency access to markets in South Korea, Taiwan, and coastal China.

Tax Advantage For Data Centers: Japan offers a government subsidy program to promote the construction of data centers in regional locations away from the main hubs. These incentives help offset initial capital expenditures and encourage greater geographic diversity for digital infrastructure.

Natural Disaster Risk

Japan has a Low Risk profile, with an overall INFORM score of 2.1 out of 10 as of September 2025. While the country has high exposure to certain natural events, its world-class infrastructure, strict building codes, and advanced coping capacity significantly mitigate the real-world risk to business operations.

Key hazards to consider in facility planning include:

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