Japan Data Centre Construction Market Size, Share, and COVID-19 Impact Analysis, By Type (Tier 1, Tier 2, Tier 3, and Tier 4), By Infrastructure (IT Infrastructure, Power Distribution & Cooling Infrastructure, and Miscellaneous Infrastructure), and Japan Data Centre Construction Market Insights, Industry Trend, Forecasts to 2035.

Japan Data Centre Construction Market Insights Forecasts to 2035

• The Japan Data Centre Construction Market Size Was Estimated at USD 10,644.83 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 6.77% from 2025 To 2035
• The Japan Data Centre Construction Market Size is Expected to Reach USD 21,873.56 Million By 2035

According to a research report published by Spherical Insights & Consulting, The Japan Data Centre Construction Market Size is Anticipated to reach USD 21,873.56 Million By 2035, Growing at a CAGR of 6.77% from 2025 To 2035. The market is driven by Japan’s rapid digital transformation, rising demand for cloud services, and government initiatives promoting regional data center development.

Market Overview

The Japan data centre construction market encompasses the planning, design, and construction of data centers that support digital infrastructure for cloud computing, AI, IoT, and enterprise IT requirements. It includes electrical, mechanical, and general construction components tailored to high-performance computing environments. Japan is a prime location for data centers due to its strategic location in the Asia-Pacific area, which draws providers aiming to service Asia's fast-growing digital economies. The nation's cutting-edge telecommunications infrastructure, which provides outstanding connectivity options, further increases its appeal as a location for data centers. This geographic advantage makes Japan more appealing as a crucial node in worldwide data management networks and establishes it as a major hub in international data flow.

Report Coverage

This research report categorizes the market for the Japan data centre construction 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 centre construction 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 centre construction market.

Driving Factors

The growing use of cloud computing, large investments in AI and IoT, and strong digital transformation projects in a number of industries are the main factors propelling the Japan data center construction market. The growth of cutting-edge data centers is facilitated by Japan's strategic emphasis on improving connectivity and technology infrastructure. More advanced facilities are also being developed as a result of the increasing demand for data security and adherence to global standards. Japan's dedication to sustainability lends additional credence to these tendencies, as evidenced by the rise in the development of green data centers that make use of energy-efficient technologies and renewable energy sources.

Restraining Factors

The market nevertheless challenges expensive land and building prices, particularly in major cities like Tokyo, despite its strong momentum. Project timescales are slowed by a lack of labor and regulatory restrictions, such as environmental requirements and zoning rules. The risk of natural disasters (typhoons, earthquakes) necessitates expensive flood-resilient and seismic architecture. Concerns about energy use and carbon emission goals are also encouraging entrepreneurs to spend money on pricey green solutions.

Market Segmentation

The Japan data centre construction market share is classified into type and infrastructure.

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

The Japan data centre construction market is segmented by type into tier 1, tier 2, tier 3, and tier 4. Among these, the tier 1 segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. Small enterprises and organizations with less demanding uptime requirements are best suited for tier 1 data centers, which offer rudimentary functionality with low redundancy.

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

The Japan data centre construction market is segmented by infrastructure into IT infrastructure, power distribution & cooling infrastructure, and miscellaneous infrastructure. Among these, the IT infrastructure segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. IT infrastructure comprises vital elements that are necessary for data processing and storage, such as servers, networking hardware, and storage solutions.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan data centre construction 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

• CSF Group
• HIBIYA ENGINEERING, Ltd.
• DSCO Group
• Daiwa House Industry Co., Ltd.
• NTT Ltd.
• Sato Kogyo (S) Pte Ltd.
• Obayashi 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 Centre Construction Market based on the below-mentioned segments

Japan Data Centre Construction Market, By Type

• Tier 1
• Tier 2
• Tier 3
• Tier 4

Japan Data Centre Construction Market, By Infrastructure

• IT Infrastructure
• Power Distribution & Cooling Infrastructure
• Miscellaneous Infrastructure