Market Size in 2024: USD 4.4 billion

Market Forecast in 2033: USD 14.4 billion

Market Growth Rate: 14.2% (2025-2033)

According to the latest report by IMARC Group, the Japan data center colocation market size reached USD 4.4 billion in 2024. Looking forward, IMARC Group expects it to reach USD 14.4 billion by 2033, exhibiting a CAGR of 14.2% from 2025 to 2033.

Japan Data Center Colocation Industry Trends and Drivers

The colocation market in Japan is also strong and continues to grow owing to cloud adoption, digital transformation, IoT, big data, and storage. Retail colocation continues to be popular, with small businesses and SMEs seeking flexibility in contracts and space. Wholesale, or bulk colocation, targets enterprise-sized customers with higher data center space requirements. The largest verticals for colocation services are IT and Telecoms (including 5G and Internet of Things (IoT) based services), with banking, financial services and insurance (BFSI), healthcare and entertainment/media also represented. While it's expensive to build a local data center, colocation services are in high demand. Increasingly, small and medium businesses are using colocation.

Tokyo, the capital of Kanto, is seen as the business capital of Japan by the Kansai/Kinki and Chubu regions. The government promotes the digitalization of the economy and information security. Spurred by rising power costs, physical space constraints and energy efficient cooling technology, as well as the benefits of existing infrastructure, Japan has historically been one of the largest colocation markets in the Asia-Pacific region, although its dominance is increasingly challenged by other markets in the region.

Request a PDF sample for more detailed market insights (2026 edition): https://www.imarcgroup.com/japan-data-center-colocation-market/requestsample

Japan Data Center Colocation Market Segmentation

The market report offers a comprehensive analysis of the segments, highlighting those with the largest Japan data center colocation market share. It includes forecasts for the period 2025-2033 and historical data from 2019-2024 for the following segments.

By Type:

Retail Colocation

Wholesale Colocation

By Organization Size:

Small and Medium Enterprises

Large Enterprises

By End Use Industry:

BFSI

Manufacturing

IT and Telecom

Energy

Healthcare

Government

Retail

Education

Entertainment and Media

Others

Regional Insights:

Kanto Region

Kansai/Kinki Region

Central/Chubu Region

Kyushu-Okinawa Region

Tohoku Region

Chugoku Region

Hokkaido Region

Shikoku Region

For deeper insights, request a customized version of this report (2026 edition):  https://www.imarcgroup.com/request?type=report&id=18299&flag=E

Competitive Landscape

The report offers an in-depth examination of the competitive landscape. It includes a thorough competitive analysis encompassing market structure, key player positioning, leading strategies for success, a competitive dashboard, and a company evaluation quadrant. Additionally, the report features detailed profiles of all major companies in the Japan data center colocation industry.

Key Highlights of the Report

Market Performance (2019-2024)

Market Outlook (2025-2033)

COVID-19 Impact on the Market

Porter’s Five Forces Analysis

Strategic Recommendations

Historical, Current, and Future Market Trends

Market Drivers and Success Factors