Japan Data Center Cooling Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| Historical Data Period | 2019 - 2022 |
| CAGR (2024 - 2030) | 7.30 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Japan Data Center Cooling Market Analysis
The Japan Data Center Cooling Market is expected to register a CAGR of 7.30% during the forecast period.
The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country/region.
- The upcoming IT load capacity of the Japan data center market is expected to reach 2100 MW by 2029. The country's construction of raised floor area is expected to increase to 10K sq. ft by 2029.
- The country's total number of racks to be installed is expected to reach 512K units by 2029. Osaka and Tokyo are expected to house the maximum number of racks by 2029. Throughout the year, temperatures typically fluctuate between 2°C and 30°C, rarely dropping below -1°C or above 0.5°C.
- There are close to 32 submarine cable systems connecting Japan, and many are under construction.
Japan Data Center Cooling Market Trends
Liquid-based Cooling is The Fastest Growing Segment
- Technological advances have made liquid cooling easier to maintain, more scalable, and more affordable, reducing data center liquid consumption by more than 15% in tropical climates and by 80% in greener areas. The energy used for liquid cooling can be recycled to heat buildings and water, and advanced artificial refrigerants can effectively reduce the carbon footprint of air conditioners.
- Some Japanese companies already use snow as a coolant for at least several months of the year. Based in Niigata prefecture on Japan's north coast, DataDock Inc. cools its servers in Nagaoka City with snowmelt and cold outside air.
- Japanese data center providers KDDI and NTT DATA are researching immersion technology to significantly reduce energy waste in cooling server hardware. In KDDI's field test, we achieved an astounding result of reducing power consumption during temperature control by 94% compared to conventional air cooling systems. KDDI said IT equipment is often thought of as the biggest consumer of power, but about half of the total power consumption in data centers is used for cooling.
- Direct liquid cooling (DLC) solutions can achieve partial power usage effectiveness (PUE) values ranging from 1.02 to 1.03, surpassing the efficiency of even the most advanced air cooling systems by a low single-digit margin. It is important to note, however, that PUE does not account for a significant portion of the energy efficiency improvements attributed to DLC. In traditional server setups, fans are responsible for power consumption within the server rack, and this power usage is factored into the IT power section of the PUE calculation. These fans are considered an integral part of the data center's overall energy consumption.
- Japan is one of the three largest markets for e-commerce. It is placed ahead of the United Kingdom but behind the United States. The e-commerce market in Japan is primarily driven by high internet penetration, secured by the Hi-tech network infrastructure. M-commerce is experiencing significant expansions. Mobile sales were projected to outpace the overall B2C e-commerce market until 2022.. Such instances cater to the major demand for colocation with the increasing demand for improved cooling services.
IT & Telecommunication is the Largest Segment
- Japan is home to major ICT organizations such as Sony, Panasonic, Fujitsu, NEC, and Toshiba, which continue to play a key role in the country's expansion as a major center for ICT. In addition, the orderly development of numerous modernization and expansion projects in the country, along with increasing government spending on maintaining high-quality and advanced infrastructure, are also driving the growth of the market.
- The rapid growth of the E-Japan strategy, which focuses on the development of local e-government projects involving citizen participation, self-evaluation, and feedback on online government services, will drive future growth of the Japanese ICT market.
- The Japanese government is making efforts to accelerate the digital transformation of the private sector and support emerging SMEs.
- In November 2022, digital infrastructure provider Equinix announced it would expand its digital infrastructure footprint in Japan with a USD 115 million investment in new data centers. The new data center will enhance corporate connectivity with global networks and cloud service providers, enabling them to scale and strengthen Japan's growing digital economy.
- In June 2022, the Japanese government announced that it would deploy wireless networks to 99% of the population by the end of 2030. Its basic policy to promote digitalization and submarine cables is scheduled to be completed throughout Japan by the end of 2025.
Japan Data Center Cooling Industry Overview
The Japan data center cooling market is moderately competitive and has recently gained a competitive edge. Currently, a few major players, including Stulz GmbH, Schneider Electric SE, Vertiv Group Corp., Daikin Industries Ltd, and Trane Inc., hold a dominant position in the market.
In March 2023, STULZ, a Hamburg-based mission-critical air conditioning company, made a significant announcement regarding its industry-leading CyberAir 3PRO DX series. They revealed that some units within this series are now compatible with the low global warming potential (GWP) refrigerant R513A. This groundbreaking development underscores the company's ongoing commitment to delivering the most sustainable air conditioning systems for data centers. Additionally, STULZ has expanded its product portfolio to incorporate the use of R513A refrigerant.
In February 2022, Gigabyte introduced pioneering high-performance computing servers based on AMD EPYC and Nvidia A100 technology. These servers are equipped with CoolIT's direct liquid cooling system. The new machines feature 1 or 2 AMD EPYC 7003 series 'Milan' processors, boasting up to 128 cores, as well as 4 or 8 Nvidia A100 80GB SXM4 modules. CoolIT, known for its unique direct liquid cooling system, ensures separate cooling for the CPU and GPU, optimizing performance.
Japan Data Center Cooling Market Leaders
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Vertiv Co.
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Schneider Electric SE
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STULZ GMBH
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Daikin Industries Ltd
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Trane Inc.
*Disclaimer: Major Players sorted in no particular order
Japan Data Center Cooling Market News
- March 2023: Managed service provider (MSP) Interactive introduced its Immersion Data Center Cooling solution, aimed at enhancing high-performance computing (HPC) capabilities for its clientele. Collaborating with digital infrastructure provider Vertiv, MSP has integrated the system with green revolution cooling tanks. These tanks employ a single-phase, non-conductive coolant known for its electrical component safety and exceptional heat transfer capacity, reportedly 1200 times greater than that of air.
- March 2023: LiquidStack secured a significant investment from HVAC company Trane Technologies, signaling a new frontier in immersion cooling technology. LiquidStack's exclusive liquid immersion cooling technology sets a higher standard for sustainable data center cooling. These immersion cooling solutions align with the company's ambitious sustainability goals, which include reducing carbon emissions within its customer base by one billion tons by 2030 and achieving net-zero emissions by 2050. Moreover, they assist in achieving
Japan Data Center Cooling Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumption & Market Definition
- 1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Development of IT Infrastructure in the Region
- 4.2.2 Emergence of Green Data Centers
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4.3 Market Restraints
- 4.3.1 Costs, Adaptability Requirements, and Power Outages
- 4.4 Value Chain / Supply Chain Analysis
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4.5 Industry Attractiveness - Porter's Five Forces Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Assessment of COVID-19 Impact
5. MARKET SEGMENTATION
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5.1 Cooling Technology
- 5.1.1 Air-based Cooling
- 5.1.2 Liquid-based Cooling
- 5.1.3 Evaporative Cooling
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5.2 End-User
- 5.2.1 IT & Telecommunication
- 5.2.2 BFSI
- 5.2.3 Government
- 5.2.4 Media & Entertainment
- 5.2.5 Other End-Users
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 Vertiv Co.
- 6.1.2 Schneider Electric SE
- 6.1.3 STULZ GMBH
- 6.1.4 Daikin Industries Ltd
- 6.1.5 Trane Inc.
- 6.1.6 Johnson Controls International PLC
- 6.1.7 Mitsubishi Electric Corporation
- 6.1.8 RITTAL Electro-Mechanical Technology Co. Ltd (RITTAL GMBH & CO. KG)
- 6.1.9 Nortek Air Solutions
- 6.1.10 Munters Air Treatment Equipment (Beijing) Co. Ltd
- 6.1.11 CoolIT Systems Inc.
- 6.1.12 Asetek AS
- 6.1.13 Wakefield-Vette Inc.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityJapan Data Center Cooling Industry Segmentation
Data center cooling is a set of techniques and technologies to maintain optimal operating temperatures in data center environments. Data center cooling is critical as data center facilities house many computer servers and network equipments that generate heat during operation. Efficient cooling systems are used to dissipate this heat and prevent equipment from overheating, ensuring continued reliable operation of the data center. Various methods, such as air conditioning, liquid cooling, and hot/cold aisle containment, are commonly used to control temperature and humidity in data centers.
The Japan data center cooling market is segmented by cooling technology type (air-based cooling, liquid-based cooling, and evaporative cooling) and by end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end-users).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments
| Cooling Technology | Air-based Cooling |
| Liquid-based Cooling | |
| Evaporative Cooling | |
| End-User | IT & Telecommunication |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End-Users |
Japan Data Center Cooling Market Research Faqs
What is the current Japan Data Center Cooling Market size?
The Japan Data Center Cooling Market is projected to register a CAGR of 7.30% during the forecast period (2024-2030)
Who are the key players in Japan Data Center Cooling Market?
Vertiv Co., Schneider Electric SE, STULZ GMBH, Daikin Industries Ltd and Trane Inc. are the major companies operating in the Japan Data Center Cooling Market.
What years does this Japan Data Center Cooling Market cover?
The report covers the Japan Data Center Cooling Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Japan Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Japan Data Center Cooling Industry Report
Statistics for the 2024 Japan Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Data Center Cooling analysis includes a market forecast outlook to for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
