Japan Data Center Renovation Market Size, Share, and COVID-19 Impact Analysis, By Renovation Type (Mechanical Renovation, Electrical Renovation, and Infrastructure Renovation), By Renovation Goal (Improved Energy Efficiency, Increased Capacity and Density, and Modernization and Upgrading), and Japan Data Center Renovation Market Insights, Industry Trend, Forecasts to 2035.

Japan Data Center Renovation Market Insights Forecasts to 2035

• The Japan Data Center Renovation Market Size was estimated at USD 1,134.18 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 13.32% from 2025 to 2035
• The Japan Data Center Renovation Market Size is Expected to Reach USD 4,489.17 Million by 2035

According to a research report published by Spherical Insights & Consulting, The Japan Data Center Renovation Market Size is Anticipated to reach USD 4,489.17 Million By 2035, Growing at a CAGR of 13.32% from 2025 to 2035. 

Market Overview

The Japan data center renovation market refers to the industry focused on upgrading and modernizing existing data centers in Japan.  One of the main factors propelling the data center renovation market in Japan is the increased focus on sustainability and energy efficiency. Data center operators have been forced to modernize their buildings with energy-efficient technologies due to rising electricity costs and strict government rules regulating carbon emissions. For example, data centers are adopting cutting-edge cooling technologies like liquid cooling and direct-to-chip cooling to reduce power consumption, according to recent studies from Japan's Ministry of the Environment. To improve thermal management and lower power consumption, businesses are progressively implementing cutting-edge cooling technologies, including liquid cooling and direct-to-chip cooling.

Report Coverage

This research report categorizes the market for the Japan data center renovation 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 renovation 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 renovation market.

Driving Factors

The market for data center renovations in Japan is expanding significantly due to strict government controls on carbon emissions, growing data consumption, and the growing need for energy-efficient infrastructure. Companies are actively modernizing their data centers to save energy expenses, improve operational efficiency, and meet sustainability requirements. Modernization initiatives are being accelerated by the use of AI-driven automation, modular designs, and sophisticated cooling systems. Furthermore, the need for infrastructure enhancements is being fueled by the explosion of cloud computing, edge computing, and 5G rollout. Businesses are also giving security improvements priority to reduce cyber threats and guarantee data security. The market environment is being further shaped by the move toward green data centers, which make use of cutting-edge cooling technologies and renewable energy sources.

Restraining Factors

The high cost of updating current infrastructure is one of the main obstacles facing the data center renovation business in Japan. Small and medium-sized businesses' (SMEs') finances may be strained by the substantial expenditures needed for energy-efficient cooling systems, cutting-edge security systems, and next-generation technology that renovation projects demand.

Market Segmentation

The Japan data center renovation market share is classified into renovation type and renovation goal.

• The mechanical renovation segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan data center renovation market is segmented by renovation type into mechanical renovation, electrical renovation, and infrastructure renovation. Among these, the mechanical renovation segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. Modernizing HVAC, ventilation, and cooling systems is the main goal of mechanical renovation to improve thermal control and energy efficiency.

• The improved energy efficiency segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan data center renovation market is segmented by renovation goal into improved energy efficiency, increased capacity and density, and modernization and upgrading. Among these, the improved energy efficiency segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. Enhancing energy efficiency is still a primary goal for companies looking to lower operating costs and carbon footprints. Businesses are spending money on energy-efficient cooling, energy management driven by AI, and the integration of renewable power sources to achieve sustainability objectives.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan data center renovation 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

• Cisco Systems
• Siemens
• Emerson Electric
• Eaton
• ABB
• Vertiv
• Johnson Controls
• Legrand
• 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 renovation market based on the below-mentioned segments

Japan Data Center Renovation Market, By Renovation Type

• Mechanical Renovation
• Electrical Renovation
• Infrastructure Renovation

Japan Data Center Renovation Market, By Renovation Goal

• Improved Energy Efficiency
• Increased Capacity and Density
• Modernization and Upgrading