Data Centers in Kanagawa
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Kanagawa – Strategic Hub for Tokyo Metro
Kanagawa serves as a critical data center market for enterprises requiring low-latency connectivity to the Tokyo metropolitan area while mitigating the concentration risk of deploying solely within the city center. This region is an essential component of disaster recovery and business continuity plans for companies operating in Japan's primary economic hub. Its robust infrastructure ensures high uptime and performance for mission-critical applications.
Kanagawa: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong connectivity leveraged from the adjacent Tokyo market. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Primary access is via nearby Tokyo; private network extensions are common. |
| Power Cost | ¥20.00 - ¥24.00/kWh | Industrial electricity pricing supports high-density computing needs. |
| Disaster Risk | Low (2.1/10) | Low overall risk due to high coping capacity, despite specific hazard exposures. |
| Tax Incentives | Yes | Government subsidy program supports decentralization of data centers. |
| Sales Tax | 10% Consumption tax | As of September 2025. |
Network & Connectivity Ecosystem
Kanagawa's connectivity is intrinsically linked to the dense digital ecosystem of Tokyo. While not a primary interconnection hub itself, it functions as a key extension of that market, offering resilient access to a world-class network environment.
Carrier Density & Carrier Neutrality Data centers in Kanagawa provide access to a rich ecosystem of domestic and international carriers, primarily through redundant fiber paths connecting to major carrier hotels and network hubs in Tokyo. Carrier-neutral facilities are widely available, offering diverse connectivity options.
Direct Cloud On-Ramps Direct cloud on-ramps are not located within Kanagawa itself; the primary access points are concentrated in nearby Tokyo. Organizations in Kanagawa establish secure, high-speed connections to all major cloud providers using private network extensions like dedicated fiber or wavelength services.
Internet Exchange Points (IXPs) The major Japanese Internet Exchanges, including JPIX and BBIX, are located in Tokyo. Facilities in Kanagawa access these vital peering points through low-latency network services, enabling efficient traffic exchange.
Bare Metal Bare metal server capacity is available in the region, often as part of a hybrid colocation solution. Providers like Hivelocity and phoenixNAP offer dedicated server options that can be deployed to complement existing infrastructure in the greater Tokyo area.
Power Analysis
Average Cost Of Power Industrial power pricing is estimated between ¥20.00 - ¥24.00/kWh, as of September 2025. This stable and predictable pricing structure is advantageous for planning long-term operational budgets for large-scale deployments.
Power Grid Reliability Japan's power grid is known for its exceptional reliability and resilience. The grid serving Kanagawa is well-engineered, with significant redundancy and support from multiple substations, ensuring high uptime for critical data center operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Kanagawa is adjacent to the Tokyo metropolitan area and includes the major commercial city of Yokohama. Data centers here provide low-latency connectivity to one of the world's largest economic zones, serving finance, manufacturing, and technology sectors.
Regional Market Reach Strategically located, Kanagawa effectively serves the entire Kanto region, which has a population of over 40 million people. It is an ideal location for disaster recovery and secondary production sites for businesses headquartered in Tokyo.
Tax Advantage For Data Centers Japan offers a government subsidy program to encourage data center development in regions outside of major metropolitan cores like Tokyo. This initiative aims to decentralize critical infrastructure, which can lower capital expenditures for new projects in Kanagawa.
Natural Disaster Risk
Based on a comprehensive risk assessment, Kanagawa has a very low overall risk profile with a score of 2.1 out of 10, as of September 2025. This low score reflects Japan's extremely high institutional and infrastructural capacity to mitigate and manage potential disasters.
However, the region has high exposure to specific natural hazards:
- Tsunami: 10/10
- Earthquake: 9.7/10
- Coastal Flood: 9.4/10
- Tropical Cyclone: 9.2/10
Modern data centers in this area are engineered to the highest seismic and weather-resistant standards to counter these specific threats, making them reliable choices for critical infrastructure.
