Research Tokyo Data Centre Market Dynamics Q2 2025
Tokyo Fundamentals •
AirTrunk breaks ground on 40MW phase at TOK1 Campus in Inzai, which is part of 300MW hyperscale development site.
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ST Telemedia Global Data Centres opens 32MW Tokyo 1 facility in Inzai as first phase of 70MW campus.
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Major international data centre operator launches first phase of 96mw TY1 campus in Saitama, delivering 48 MW across 60,000 sqm facility.
Greater Tokyo remains a primary data centre hub, in cases expanding beyond traditional locations in part due to power constraints. Key operators including NTT Global Data Centers, GLP, AirTrunk and ST Telemedia Global Data Centers (STT) are developing major facilities, with new capacity coming online in H1 2025. The market is transitioning toward AI-ready infrastructure with liquid cooling.
AI deployments are driving demand growth, with hyperscalers and neo-cloud providers seeking high-density capacity. Operators are adapting facilities for AI workloads, converting underutilized space to maximize revenue. Japanese government subsidies for companies with NVIDIA GPU deployments accelerate demand for highspecification facilities. H1 2025 saw AirTrunk’s TOK 1-D (55MW) and STT’s Tokyo 1 (32MW) entering Inzai while GLP’s Tokyo West 1 TKW1-1 added 10MW to Tama. Development follows power availability in prefectures supporting data centre growth.
Construction firms are experiencing difficulties hiring qualified contractors due to strong competition from semiconductor manufacturers and government agencies that are also seeking these specialized workers. Labor shortages can extend project timelines. Tokyo's strategic position and AI adoption suggest sustained investment, though addressing labor shortages remains crucial. New regulations mandate PUE≦1.3 for newly built data centres of certain sizes from FY2029, effective two years post-operation. Outlook For Users •
Hyperscale pre-commitments to dominate demand.
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AI developments to influence enterprise decisions.
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Lease rental rates to grow.
For Providers •
To emerge as preferred location for inference workloads.
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Stable growth driven expected due to connectivity hub status.
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Availability of power to remain key parameter while planning expansion.
Total inventory Total vacant Under construction Planned Net absorption Enterprise rental rates (kW/month) Hyperscale rental rates (kW/month) Stage in rent cycle
~1852.2 MW 962.9 MW 1,446.3 MW USD 160-210 USD 110-160 Growth accelerating
Note 1: Tokyo refers to Greater Tokyo 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