APPD Market Report Article


February 28, 2023

Takeshi Akagi, Head of Research, Japan


USD 550


Strong demand on the back of a growth in cloud services

  • Alibaba Cloud established its third data centre within Greater Tokyo in 2H22.
  • Google’s first data centre in Japan is scheduled to be established in Inzai in 2023.

Multiple hyperscale projects added to supply pipeline

  • Located within a 10km radius of Tokyo station, the DPDC Shinagawa Konan site is due for completion in 2024.
  • In Greater Tokyo, NRT12 will offer 36MW in Inzai upon completion in 2024, while AirTrunk TOK2 will offer 110MW in the west of Greater Tokyo.

Polarisation in PUEs observed

  • According to a JLL’s data centre survey in 2H22, the representation of those who calculated power usage effectiveness (PUE) was 23%, of which 78% achieved a figure of 1.4 or less.
  • The availability of finances for a data centre expansion has increased, due to sluggish growth for other asset classes.

Outlook: DC asset availability to constrain investment deals

  • In spite of strong interest towards the sector, investment volume might be constrained over the next six months due to a lack of assets offered to the market.
  • Healthy activity related to land acquisitions and development projects are expected to continue for the foreseeable future.

Note: Tokyo Data Centres refers to Tokyo's overall data centre market.

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