Research Osaka Data Centre Market Dynamics Q2 2025
Osaka Fundamentals •
EdgeConneX secures major data centre land lease in Keihanna with 200MW power capacity
•
KEPCO CyrusOne joint venture breaks ground on "OSK1" in Saito, with total capacity expanding to 48MW upon full completion
•
Softbank and KDDI are building AI data centres on former plant site in Bay Area, with planned capacity above 500MW combined
Osaka's data centre market shows robust growth with precommitment discussions advancing at multiple sites. The region leverages Japan's stability, reliable power, and positions as second to Tokyo in terms of market size.
Despite challenges, the Osaka market continues positive growth as operators adopt innovative cooling solutions, including containerized options for AI workloads, with emphasis on liquid cooling technologies and battery storage solutions.
International and regional operators are attracted by GPU availability, global standardization status with joint ventures including MC Digital Reality and CyrusOne KEP, and strong regional connectivity. Highdensity, AI-ready facilities are in particular demand.
Outlook
In H1 2025, development progress included EdgeConneX’s land lease permitted for a 200MW data centre campus in Keihanna. CyrusOne KEP broke ground on the first phase of OSK1, which will deliver 48 MW in three phases attracting substantial interest.
•
Migration to colo to increase with rapid digital growth
•
Lease rentals rates likely to increase
Construction remains the primary constraint, with contractor shortages extending fit-out periods. New regulations mandate PUE≦1.3 for newly built data centres of certain sizes from FY2029, effective two years post-operation.
For Users • Hyperscalers to have increased option for availability zones
For Providers •
Hyperscale demand to drive growth of availability zones
•
Capex cost to go up due to rising input costs
•
Rising demand for AI-ready data centres
Total inventory Total vacant Under construction Planned Net absorption Enterprise rental rates (kW/month) Hyperscale rental rates (kW/month) Stage in rent cycle
~444.8 MW 551.0 MW 1,119.0 MW USD 150-180 USD 110-150 Growth accelerating
Note 1: Osaka refers to Greater Osaka data centre market. Note 2: Rental rates (kW/month) exclude electricity charges. Note 3: Exchange rate 1USD = JPY156.71
Average power rate (extra high voltage) USD cent/kWh
20 15 10 5 0 2021
2022
2023
2024
2025 H1
Note 4: Power rate includes consumption tax. Note 5: The exchange rate for each year is the simple average of the monthly average of the ‘Tokyo Market USD/JPY Spot Rate at 17:00.’ © Jones Lang Lasalle IP, Inc. 2025 Source(s): EGC METI, BOJ, JLL Research