Japan Colocation Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Retail, Wholesale, Hybrid), By Enterprise Size (Small, Medium, Large), And By Industry Vertical (BFSI, Communication & Technology, Education, Healthcare, Media & Entertainment, Retail & E-commerce, Others) - Forecasts From 2022 To 2027

  • Published : Dec 2022
  • Report Code : KSI061610168
  • Pages : 114

The JAPAN colocation market is estimated to be valued at US$3.079 billion in 2020. Colocation data center facility provides renting space to business companies for servers as well as other computing hardware, thereby enabling them to remove in-house servers or data centers. It provides them access to advanced data center technology which offers security, continuity, and scalability for various applications and data systems. Significant growth in digital transformation and the establishment of data protection is driving the demand for colocation data centers in Japan for effective data processing and security. For instance, in September 2021, the Japanese government launched its Digital Agency which aims to improve the online services and infrastructure of the country’s public sectors. Also, the amended Act on the Protection of Personal Information law which came into effect in April 2022 in Japan aims to improve personal data privacy and cybersecurity. Such launches will boost the development of colocation infrastructure in Japan as colocation provides higher security for data transmission and processing.

Based on enterprise size, the Japan colocation market is segmented as small, medium, and large. The large enterprise is expected to grow at a significant rate during the forecast period of the Japan colocation market, owing to the strategic collaboration and investments undertaken by the companies to boost digital infrastructure in the major sectors such as healthcare. For instance, in June 2022, Salesforce Japan Co, Ltd and Fujitsu Limited announced their collaboration for the development of a new digital solution for the Japanese healthcare sector which will provide trustful handling of pharmaceutical and medical data

The establishment of 5G technologies is positively impacting the colocation market growth in Japan. The introduction of 5G has created a boom in the volume of data transmission over the years which has created a demand for more data centers. The colocation data center provides a high level of security and operability to companies during data processing and storage. Japan is actively investing in 5G technologies through various collaborations and launches to provide users with effective connectivity and browsing experience. For instance, in April 2020, Japanese telecommunication companies KDDI Corporation and Softbank established a joint venture for the development of 5G networks in rural parts of the country. Furthermore, in April 2019, the Government of Japan approved plans for 5G wireless networks over the next five years with an investment of US$14.4 billion. Such rapid development will boost colocation service demand in Japan during the forecast period thereby augmenting the market growth.

Recent Development

  • In July 2019, colocation service provider Equinix Inc. established its 11th data center in Tokyo, Japan. The facility houses 950 cabinets, offering a colocation space of 39,800 square feet. Equinix further planned to expand the capacity of the cabinet to 3,500 to increase the colocation space.

Covid-19 Impact on the Japan Colocation Market

The lockdown restrictions to prevent the widespread COVID pandemic positively impacted the colocation services in Japan, as the widespread adoption of remote working, and increased reliance on the internet raised the need for colocation data centers for automation & remote monitoring.

Japan Colocation Market Scope:


Report Metric Details
 Market Size Value in 2020  US$3.079 billion
 Growth Rate  CAGR during the forecast period
 Base Year  2020
 Forecast Period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments Covered  Type, Enterprise Size, And Industry Vertical
 Companies Covered Internap Japan Co, Ltd., Digital Realty, Cyxtera Technologies Inc., KDDI Corporation, NTT Communication Corporation, Princeton Digital Group, Equinix Inc., GLBB Japan Co., Ltd, Japan Exchange Group, Inc., AT Tokyo Corporation
 Customization Scope  Free report customization with purchase



  • By Type
    • Retail
    • Wholesale
    • Hybrid
  • By Enterprise Size
    • Small
    • Medium
    • Large
  • By Industry Vertical
    • BFSI
    • Communication & Technology
    • Education
    • Healthcare
    • Media & Entertainment
    • Retail & E-commerce
    • Others


1.1. Market Overview

1.2. Covid-19 Scenario

1.3. Market Definition

1.4. Market Segmentation



2.1. Research Data

2.2. Assumptions



3.1. Research Highlights



4.1. Market Driver

4.2. Market Restraints

4.3. Porters Five Forces Analysis

4.3.1. Bargaining Power of End-Users

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis



5.1. Introduction

5.2. Retail

5.3. Wholesale

5.4. Hybrid



6.1. Introduction

6.2. Small

6.3. Medium

6.4. Large



7.1. Introduction

7.2. BFSI

7.3. Communication & Technology

7.4. Education

7.5. Healthcare

7.6. Media & Entertainment

7.7. Defense

7.8. Others



8.1. Major Players and Strategy Analysis

8.2. Emerging Players and Market Lucrativeness

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitiveness Matrix



9.1. Internap Japan Co, Ltd.

9.2. Digital Realty

9.3. Cyxtera Technologies Inc.

9.4. KDDI Corporation

9.5. NTT Communication Corporation

9.6. Princeton Digital Group

9.7. Equinix Inc.

9.8. GLBB Japan Co., Ltd.

9.9. Japan Exchange Group Inc.

9.10. AT Toyo Corporation

Internap Japan Co, Ltd.

Digital Realty

Cyxtera Technologies Inc.

KDDI Corporation

NTT Communication Corporation

Princeton Digital Group

Equinix Inc.

GLBB Japan Co., Ltd

Japan Exchange Group, Inc.

AT Tokyo Corporation

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