Singapore,October 23, 2024 | Structure Research Report 2024 : Saitama - Tokyo’s Emerging Hyperscale & AI hub

As the third largest economy in the world and home to multinational companies focused on cloud, robotics, artificial intelligence, and machine learning, Japan is undoubtedly a leader in technological innovation. Capital city Tokyo is already a digital infrastructure hub: It has the largest cluster of data centers in the APAC region, accounts for more than 80 percent of Japan’s total operational capacity and houses a mix of local and international players.

Structure research estimates Tokyo’s total colocation market is expected to almost double from USD 3.7B in 2024 to USD 7.3 B in 2030. Hyperscale and AI are expected to drive 75% of the total colocation demand for the Tokyo market by 2030, growing at a CAGR of 20%. Hyperscale and AI deployments require access to scalable land, power, and connectivity. Existing regions are severely challenged for scalable power availability, which makes further growth difficult. Saitama offers the necessary infrastructure to support the expansion of the data center industry, especially with respect to ample land and power resources. Additionally, its well-established network infrastructure and connectivity to both Eastern and central Tokyo make it an ideal option for future growth.

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