Japan Data Center Colocation Market Size, Share, and COVID-19 Impact Analysis, By Type (Retail, Wholesale), By Tier Level (Tier 1, Tier 2, Tier 3, and Tier 4), and Japan Data Center Colocation Market Insights, Industry Trend, Forecasts to 2035

Japan Data Center Colocation Market Insights Forecasts to 2035

• The Japan Data Center Colocation Market Size Was Estimated at USD 2,982.17 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 11.24% from 2025 to 2035
• The Japan Data Center Colocation Market Size is Expected to Reach USD 9,624.38 Million by 2035

According to a research report published by Spherical Insights & Consulting, the Japan Data Center Colocation Market is anticipated to reach USD 9,624.38 million by 2035, growing at a CAGR of 11.24% from 2025 to 2035. The market is driven by rising demand for cloud services, digital transformation initiatives, and the need for secure and scalable infrastructure.

Market Overview

The Japan data center colocation market refers to shared data center facilities where businesses lease space, power, and cooling infrastructure instead of building their own. This market supports industries like IT, telecom, finance, and healthcare, ensuring cost-effective, scalable, and secure data management. The affordability and operational flexibility that data center colocation services provide are two of the main reasons why companies are using them more and more. Establishing and sustaining an internal data center necessitates large investments in infrastructure, upkeep, security, and energy management, making it a major capital expense for businesses. Businesses can switch from a capital expenditure model to an operational expenditure one, which offers more financial flexibility, by utilizing colocation services.

Report Coverage

This research report categorizes the market for the Japan data center colocation market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan data center colocation market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan data center colocation market.

Driving Factors

The major factor boosting the growth and development of Japan's data center colocation market is the increasing need for sustainable and cost-effective infrastructure in Japan's data center industry, and also improved security and data compliance in the current connected world.  Additionally, the introduction of cutting-edge technology such as hybrid cloud solutions and edge computing in Japan's IT industry further increases the demand for data center colocation in Japan. Large numbers of companies in Japan are focused on minimizing their operational costs and also reducing the capital expenditure on IT operations, which is one of the important factors for rising the demand for the Japanese data center colocation market. Furthermore, an increasing number of customers or people who use cloud computing in their day-to-day use and also the rising firms that provide the cloud service, which is positively affecting on growth of the data center colocation market in Japan.

Restraining Factors

Expansion is difficult, though, due to constraints like high operating costs, stringent environmental laws, and a shortage of land in cities. Furthermore, the possibility of earthquakes in Japan makes infrastructure development more difficult, and issues with energy use necessitate sophisticated management techniques. The competitive environment with international cloud providers affects market dynamics even more.

Market Segmentation

The Japan data center colocation market share is classified into type and tier level.

• The retail segment accounted for the largest revenue in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan data center colocation market is segmented by type into retail, wholesale. Among these, the retail segment accounted for the largest revenue in 2024 and is expected to grow at a significant CAGR during the forecast period. Retail colocation mostly serves small and medium-sized businesses (SMEs) by providing scalable, adaptable solutions via shared infrastructure, which makes it affordable for companies with different requirements.

• The tier 1 segment accounted for the largest revenue in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan data center colocation market is segmented by tier level into tier 1, tier 2, tier 3, and tier 4. Among these, the tier 1 segment accounted for the largest revenue in 2024 and is expected to grow at a significant CAGR during the forecast period. Tier 1 data centers have a simple configuration with only one path for cooling and power, which makes them affordable for startups and SMEs and appropriate for non-critical applications and small organizations with modest uptime requirements.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan data center colocation market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Unitas Global
• Digital Realty
• Cyxtera Technologies Inc.
• KDDI Corporation
• NTT Communication Corporation
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at Japan, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Japan Data Center Colocation Market based on the below-mentioned segments:

Japan Data Center Colocation Market, By Type

• Retail
• Wholesale

Japan Data Center Colocation Market, By Tier level

• Tier 1
• Tier 2
• Tier 3
• Tier 4