Data Centers in Tokyo

Tokyo – Asia-Pacific's Premier Connectivity Hub

Executive Summary

Tokyo is one of the world's most advanced and connected data center markets. It is the primary choice for any organization requiring low-latency access to Japan's massive economy and serving as a strategic digital gateway to the greater Asia-Pacific region. The market's exceptional network density and carrier-neutral facilities ensure high-performance delivery for finance, gaming, and multinational enterprise applications.

Tokyo: At A Glance

Network & Connectivity Ecosystem

Tokyo's digital ecosystem is one of the most developed in the world, characterized by an incredible density of networks, cloud providers, and interconnection options. With 53 data centers, the market offers a superb foundation for building scalable and resilient infrastructure.

Carrier Density & Carrier Neutrality With over 65 unique network providers active in the market as of September 2025, enterprises have extensive choice. A healthy mix of carrier-neutral and carrier-specific facilities allows for custom network strategies, from blended IP transit to direct private connections.

Direct Cloud On-Ramps Direct, low-latency access to major cloud platforms is readily available. As of September 2025, there are over 13 dedicated cloud on-ramps providing access to 9 distinct cloud regions. Providers with a physical presence include Alibaba Cloud, AWS, Google Cloud (GCP), IBM Cloud, Microsoft Azure, and Oracle Cloud.

Internet Exchange Points (IXPs) The market is anchored by major Internet Exchanges, including the Japan Internet Exchange (JPIX) and the Broadband Internet Exchange (BBIX). These IXPs are critical for efficient traffic exchange, enabling low-latency peering between content delivery networks, service providers, and enterprises.

Bare Metal Bare metal server options are widely available in Tokyo for workloads demanding dedicated, high-performance computing resources. Providers like Hivelocity and phoenixNAP offer solutions for businesses needing the performance of single-tenant hardware.

Power Analysis

Average Cost Of Power Industrial power costs in Tokyo typically range from ¥20.50 to ¥24.75 per kWh, as of September 2025. This rate is competitive for a global financial center and allows for predictable operational expense modeling. The national energy mix consists of approximately 73% fossil fuels, 21% renewables, and 6% nuclear generation.

Power Grid Reliability The power grid serving the Tokyo metropolitan area is exceptionally reliable and well-engineered. Data center corridors are supported by redundant substations and robust distribution networks, ensuring high levels of uptime required by mission-critical financial and enterprise systems.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in Tokyo are strategically located to serve the city's primary business districts, including the Otemachi, Marunouchi, and Yurakucho financial centers. This proximity provides financial services firms, trading platforms, and multinational corporations with the lowest possible latency for their operations.

Regional Market Reach Deploying in Tokyo provides effective access to the entire Kanto region, which has a population of over 40 million. As Japan's primary interconnection point, it is the ideal location for serving the country's 125 million people and acts as a stable hub for reaching other markets throughout North Asia.

Tax Advantage For Data Centers Japan offers a government subsidy program that encourages the development of data centers in regional locations outside of central Tokyo. This incentive helps lower capital expenditures for new builds and promotes geographic diversity for disaster recovery purposes.

Natural Disaster Risk

Tokyo's overall risk profile is rated as Very Low (2.1/10) as of September 2025. This score reflects the country's extremely high coping capacity, modern infrastructure, and robust governance, which significantly mitigate its exposure to natural hazards.

While the overall operational risk is low, Japan is in a seismically active region. Key natural hazards to consider in infrastructure design and disaster recovery planning include:

• Tsunami
• Earthquake
• Coastal Flood
• Tropical Cyclone
• River Flood