Data Centers in Japan

Japan – High Speed Gateway to Asia-Pacific Markets

Executive Summary

Japan is the primary choice for enterprises that prioritize sub-millisecond latency and immediate proximity to the world’s third largest economy. This market serves as the essential digital bridge for organizations scaling high-performance compute requirements across the North Pacific.

Japan: At A Glance

Network & Connectivity Ecosystem

Japan remains a top-tier global interconnection point, acting as the primary link between North America and Asia. The infrastructure is built for speed and high availability.

Carrier Density & Carrier Neutrality: Carrier count: over 74 carriers — as of September 2025. The market is highly neutral, with major facilities in Tokyo and Osaka hosting dozens of international and domestic providers.

Direct Cloud On-Ramps: Over 19, enabling access to 12 cloud regions as of September 2025. Direct connections are available for AWS, Google Cloud (GCP), Microsoft Azure, Alibaba Cloud, Oracle Cloud, and IBM Cloud.

Internet Exchange Points (IXPs): JPIX and JPNAP are the primary exchange points, providing critical peering fabric that keeps local traffic from traveling across the Pacific.

Bare Metal: Bare metal services are widely accessible throughout the region, with providers such as Hivelocity offering high-performance options for compute-intensive requirements as of September 2025.

Power Analysis

Japan offers a power environment defined by extreme reliability and technical sophistication.

Average Cost Of Power: ¥22.50 – ¥31.00/kWh — as of September 2025. While these rates are higher than some neighboring markets, the cost reflects the stability of one of the most reliable grids on the planet.

Power Grid Reliability: The Japanese grid is well-engineered and features redundant multi-substation support in all major data center corridors. Power outages are exceedingly rare, even during extreme weather events.

Market Access, Business & Tax Climate

Building a presence in Japan provides a strategic advantage for reaching the affluent East Asian consumer base.

Proximity To Key Business Districts: Data centers are concentrated near Tokyo and Osaka, providing immediate proximity to global financial markets, automotive giants, and a thriving technology sector.

Regional Market Reach: A deployment here serves 125 million local consumers while providing a low-latency springboard to South Korea, Taiwan, and the broader APAC region.

Tax Advantage For Data Centers: The government provides subsidies for companies assisting in the decentralization of data center clusters. This financial support helps offset costs when building resilient infrastructure outside traditional metro areas.

Natural Disaster Risk

Japan maintains a Low overall risk rating as of September 2025, primarily due to world-class institutional readiness and physical infrastructure standards.

Risk Rubric: Low (2.1/10) — as of September 2025

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

While hazard scores for seismic and coastal events are high, Japan’s strict building codes and data center engineering set the global standard for resilience. Facilities are purpose-built to withstand significant seismic activity, making them some of the safest locations for critical data globally.