Data Centers in Kobe
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Kobe – Resilient Gateway to the Kansai Region
Executive Summary
Kobe is a strategic data center market for enterprises requiring a robust presence in Western Japan. It serves as a prime disaster recovery location for primary deployments in Tokyo and offers a compelling alternative to Osaka, balancing excellent connectivity with a diversified risk profile. This market is ideal for businesses that depend on low-latency access to the vast Kansai economy while prioritizing infrastructure resilience and uptime.
Kobe: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, serving as a secondary hub to Tokyo and Osaka. |
| Direct Cloud On-Ramps | Over 1 – as of September 2025 | Direct access to Microsoft Azure is available. |
| Power Cost | ¥22.00 - ¥25.00 JPY/kWh | Reflects stable but premium industrial power rates typical for Japan. |
| Disaster Risk | Very Low (2.1/10) – as of September 2025 | High exposure to natural events is offset by exceptional coping capacity. |
| Tax Incentives | Yes | Government subsidies support data center decentralization away from Tokyo. |
| Sales Tax | 10% Consumption Tax – as of September 2025 | The standard national rate applies to goods and services. |
Network & Connectivity Ecosystem
Kobe provides a reliable and diverse connectivity ecosystem, making it a strong secondary market in Japan. While not as dense as Tokyo, it offers sufficient options for most enterprise and disaster recovery needs.
Carrier Density & Carrier Neutrality With access to over 3 national and regional carriers, as of September 2025, Kobe offers adequate network choice. Carrier-neutral facilities provide the primary interconnection points, allowing businesses to connect with the providers that best suit their performance and cost requirements.
Direct Cloud On-Ramps There is 1 direct cloud on-ramp available in the Kobe market, enabling private connections to 2 separate cloud regions as of September 2025. This allows for dedicated, high-throughput access to major cloud platforms. Local availability includes:
- Microsoft Azure
Internet Exchange Points (IXPs) Public peering in Kobe is limited; most interconnection is handled privately or routed through the major Internet Exchanges in nearby Osaka. This structure provides reliable, low-latency access to Japan's primary peering hubs for efficient traffic exchange.
Bare Metal Bare metal server capacity is available in the region, offering dedicated compute for performance-intensive workloads. Providers such as Hivelocity and Latitude.sh can deliver services to the area, providing alternatives to virtualized cloud instances.
Power Analysis
Japan's power infrastructure is known for its high degree of reliability, and Kobe benefits from this national strength. The grid is engineered for stability, which is critical for maintaining data center uptime.
Average Cost Of Power The average cost for industrial power is estimated between ¥22.00 - ¥25.00 JPY/kWh, as of September 2025. While competitive within Japan, these rates can influence the total cost of ownership for high-density compute deployments compared to other global markets.
Power Grid Reliability The power grid serving the Kobe metropolitan area is exceptionally reliable. Data center corridors are supported by redundant infrastructure and multiple substations, ensuring consistent and clean power delivery necessary for mission-critical operations.
Market Access, Business & Tax Climate
Kobe's strategic location within the Kansai metropolitan area provides excellent access to one of Japan's most significant economic zones.
Proximity To Key Business Districts Data centers in Kobe are well-positioned to serve the city's prominent manufacturing, international trade, and logistics industries. The proximity to the Port of Kobe provides a critical advantage for companies involved in the global supply chain.
Regional Market Reach Deployments in Kobe can effectively serve the entire Kansai region, which includes the major cities of Osaka and Kyoto. This geography contains over 20 million people, making it a vital market for digital service delivery with minimal latency.
Tax Advantage For Data Centers Japan offers a government subsidy program that encourages the development of data centers in regional locations like Kobe. This initiative helps offset initial capital expenditures and supports the decentralization of the nation's digital infrastructure.
Natural Disaster Risk
Kobe has a Very Low overall disaster risk rating of 2.1 out of 10, as of September 2025. This score reflects the country's world-class infrastructure, stringent building codes, and advanced early warning systems, which significantly mitigate the high exposure to certain natural hazards.
Key hazards for the region include:
- Tsunami: 10/10
- Earthquake: 9.7/10
- Coastal Flood: 9.4/10
- Tropical Cyclone: 9.2/10
- River Flood: 7.8/10
Despite the high scores for individual hazards, Japan's institutional and infrastructural coping capacity is among the best in the world, dramatically reducing the ultimate risk to data center operations.
