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Japan Data Center Server Market Analysis

The Japan Data Center Server Market size is estimated at USD 22.68 billion in 2024, and is expected to reach USD 26.33 billion by 2030, growing at a CAGR of 2.52% during the forecast period (2024-2030).

Japan's demand for data centers is proliferating and becoming more attractive as a business market. Environmental initiatives, government support for local data centers, changes in industrial structure, and changing lifestyles due to technological advancements all play a significant role in the Japanese data center market, resulting in major demand for the server market.

• The major driver for the market growth is the growing demand for hyperscale construction in the Japanese region. Osaka's strength lies in its diverse concentration of industries, encompassing environmental, new energies, pharmaceuticals, and manufacturing sectors. This vibrant ecosystem fosters a unique coaction between hyperscale data centers and industries driving global sustainability and technological advancement. With a population of 8.8 million, Osaka Prefecture has a GDP of USD 360 billion, similar to the size of Norway's economy.
• Japan is widely regarded as one of the most advanced economies in terms of Internet penetration. As of 2023, Japan's Internet usage rate (individuals) was 82.9%, and the development rate of optical fiber was 99.3%. The number of broadband subscribers was 43.8 million, which includes 36.6 million FTTH subscribers and 6.5 million CATV Internet subscribers, while the number of mobile broadband subscribers (4G and 5G) was 184 million.
• The energy efficiency of cloud data centers can play a crucial role in reducing Japan's carbon footprint to achieve the Japanese government's goal of net-zero carbon emissions by 2050. 
• Having recognized the benefits cloud technologies can provide to the country and their positive effect on encouraging innovation and fostering non-conventional business models, the Japanese government has been launching numerous initiatives to promote the cloud as part of the broader plans to digitalize the country further.
• To build a server, one must buy individual components first. They have to assemble the server and install the necessary software. It is resource-intensive to customize, own, and maintain a server. It is well-suited for long-term projects and knowledge-building within the company.

Japan Data Center Server Industry Segmentation

The Japan data center server market is defined by the revenue accrued from various solutions used across end-user industries.

The Japan data center server market is segmented by form factor (blade server, rack server, and tower server) by end user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.