Data Centers in Kanagawa
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Kanagawa – Strategic Expansion for Tokyo Workloads
Kanagawa serves as a vital data center market for organizations requiring proximity to Tokyo with strategic diversification options. It is an ideal location for disaster recovery and secondary sites supporting Japan's primary economic hub, providing robust infrastructure without the same physical and financial density of central Tokyo.
Kanagawa: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity, primarily serving the greater Tokyo area. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Direct access is via nearby Tokyo; private network extensions are common. |
| Power Cost | ¥24.00-¥27.50/kWh | Industrial power costs are a key operational expense in this market. |
| Disaster Risk | Low (2.1/10) | While seismically active, infrastructure is engineered for resilience against specific hazards. |
| Tax Incentives | Yes | Government programs support data center decentralization outside of primary hubs. |
| Sales Tax | 10% Consumption Tax | Standard national tax rate applies to goods and services, as of September 2025. |
Network & Connectivity Ecosystem
Kanagawa's connectivity is intrinsically linked to the massive Tokyo ecosystem. While not a primary hub itself, it functions as a critical extension of it.
Carrier Density & Carrier Neutrality The region supports a healthy number of national and regional carriers, with most facilities offering carrier-neutral access. While not as dense as central Tokyo, dozens of providers are available, ensuring competitive interconnection options as of September 2025.
Direct Cloud On-Ramps There are no major public cloud on-ramps located directly within Kanagawa as of September 2025. Secure, low-latency connections to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, are established via dedicated private network links to their availability zones in nearby Tokyo.
Internet Exchange Points (IXPs) Most public and private peering occurs at major Internet Exchanges in Tokyo. Connectivity to these IXPs from Kanagawa data centers is straightforward via the region's dense fiber network, enabling efficient traffic exchange.
Bare Metal Bare metal server options are widely available in the region, providing dedicated compute for performance-sensitive applications. Providers like Hivelocity and others offer solutions from data centers in the greater Tokyo area.
Power Analysis
Japan's power infrastructure is advanced, though costs are a significant consideration for high-density deployments.
Average Cost Of Power Industrial power rates in the Kanagawa area typically range from ¥24.00 to ¥27.50 per kWh as of September 2025. These costs can impact the total cost of ownership for large-scale colocation or dedicated server deployments. The energy mix is primarily fossil fuels (~73%), with renewables (~21%) and nuclear (~6%) also contributing.
Power Grid Reliability The power grid serving the Kanto region, including Kanagawa, is well-engineered and highly reliable. Data centers in the area are supported by redundant power feeds and substations designed to maintain uptime during grid disturbances.
Market Access, Business & Tax Climate
Kanagawa offers a compelling business case as a secondary site or for companies directly serving its substantial local economy.
Proximity To Key Business Districts Data centers in Kanagawa provide low-latency connectivity to the commercial and financial districts of both Yokohama (Kanagawa's capital) and central Tokyo. This makes it ideal for businesses in manufacturing, technology, and logistics that operate throughout the greater metropolitan area.
Regional Market Reach From Kanagawa, organizations can effectively serve the entire Kanto region, which includes Tokyo and has a population exceeding 40 million people. It is a strategic location for reaching one of the world's largest and most technologically advanced consumer and business markets.
Tax Advantage For Data Centers Japan offers a government subsidy program that encourages the decentralization of data centers to reduce concentration risk in major cities like Tokyo. This initiative can lower the initial capital investment and operating costs for new deployments in prefectures like Kanagawa.
Natural Disaster Risk
Overall disaster risk for Kanagawa is rated Very Low (2.1/10) by INFORM Risk, as of September 2025. This score reflects the country's high coping capacity and resilient infrastructure, despite significant natural hazard exposure.
Key risks for the region include:
- Tsunami: High exposure (10/10) due to its coastal location.
- Earthquake: Very high exposure (9.7/10) as Japan is in a seismically active zone.
- Coastal Flood: Very high exposure (9.4/10).
- Tropical Cyclone: Very high exposure (9.2/10).
- River Flood: High exposure (7.8/10).
While hazard scores are high, modern data centers in the region are purpose-built to mitigate these specific risks through advanced engineering and site selection.
