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Data Centers in Tokyo

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Tokyo – Asia’s Premier Low-Latency Interconnection Hub

Executive Summary

Tokyo is the mandatory digital anchor for any enterprise trading in East Asia. It provides the densest concentration of carrier-neutral facilities and the lowest latency routes to major regional financial exchanges. Organizations prioritizing uptime and speed find this market a resilient foundation for Pacific Rim operations as of December 2025.

Tokyo: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+Superior density and carrier diversity as of December 2025.
Direct Cloud On-RampsOver 13 – as of December 2025Access to AWS, GCP, Azure, Alibaba, Oracle, and IBM Cloud.
Power Cost$0.18 – $0.24/kWh – as of December 2025Premium pricing for grid stability and diverse fuel mix.
Disaster RiskLow (2.1/10) – as of December 2025Exceptional mitigation capacity despite hazard exposure.
Tax IncentivesYes – as of December 2025Subsidies available to support decentralization of facilities.
Sales Tax10% Consumption Tax – as of December 2025Standard consumption tax applied to digital services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 65 as of December 2025. Tokyo maintains a massive network density where most Tier 1 facilities are carrier-neutral, hosting a mix of local and international providers.

Direct Cloud On-Ramps: Over 13 active on-ramps provide low-latency access to 9 cloud regions as of December 2025. This includes dedicated connections to AWS, Google Cloud (GCP), Microsoft Azure, Alibaba Cloud, Oracle Cloud, and IBM Cloud.

Internet Exchange Points (IXPs): The market is anchored by JPIX, JPNAP, and BBIX, which facilitate high-volume local peering and reduce transit costs for regional traffic as of December 2025.

Bare Metal: High-performance bare metal services are widely available through providers such as Hivelocity, allowing for rapid deployment of single-tenant hardware as of December 2025.

Power Analysis

Average Cost Of Power: Industrial electricity rates range from $0.18 – $0.24/kWh as of December 2025. While prices are higher than in some regions, the cost reflects a reliable energy mix of fossil fuels, renewables, and nuclear power.

Power Grid Reliability: The grid in Tokyo is well-engineered and reliable as of December 2025. Data center clusters benefit from redundant, multi-substation support to ensure continuous uptime even during peak demand.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Facilities are strategically positioned near Otemachi and Marunouchi, the financial centers of Japan. This proximity is vital for high-frequency trading and low-latency enterprise applications as of December 2025.

Regional Market Reach: Tokyo serves as the primary hub for the Japanese population and acts as a springboard for traffic to South Korea, Taiwan, and the broader Asia-Pacific region as of December 2025.

Tax Advantage For Data Centers: Japan provides a government subsidy program specifically to support the decentralization of data centers as of December 2025. This program assists companies in managing the costs associated with moving workloads to more strategically located facilities.

Natural Disaster Risk

The overall risk for Tokyo is classified as Low (2.1/10) as of December 2025. While the location faces significant natural hazards, the infrastructure is built to exceptional engineering standards to withstand these events.

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

Hazard scores are based on exposure, but the city’s coping capacity and advanced infrastructure significantly lower the actual operational risk for data center operators as of December 2025.

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