What is the current state of the data center market in your region?

Japan is a highly developed economy with strong international connectivity, which underpins it as an Asian technology and data center hub. Data center capacity in Japan is continuing to accelerate, and supply is outpaced by demand. Tokyo continues to be a key market while others (like the Kansai region) emerge. Competition for land is increasing, with demand coming from hyperscale cloud customers, data center operators, and land developers.

What are the key drivers and goals of the data center business in your region?

The increased use of cloud-based services, AI, and robotics, and the government’s commitment to transform Japan into a digital nation continues to not only drive digitalization but also cloud adoption for Japanese enterprise. Cloud adoption is poised for significant growth. From a site selection perspective, access to power, fiber connectivity, and low locational risk remain important, especially as it’s becoming increasingly competitive to locate ideal development sites, particularly in Tokyo and Kansai.

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