Japan Data Center Cooling Market Size

Japan Data Center Cooling Market size was valued at USD 1 billion in 2024 and is anticipated to surpass USD 5 billion by the end of 2037, expanding at a CAGR of 13.3% during the forecast period, i.e., 2025-2037. In 2025, the industry size of Japan data center cooling will be valued at USD 1.1 billion.     

Japan data center cooling market is expected to grow significantly owing to the rising demand for advanced data storage solutions and rapidly expanding cloud computing and artificial intelligence applications. With evolving data centers to support complex and power-intensive workloads, efficient cooling systems are becoming crucial to maintain efficiency in operations and prevent unplanned shutdowns. In April 2023, Mitsubishi Heavy Industries marked one of the remarkable developments in this sector by developing a new hybrid cooling system capable of housing servers utilizing immersion, air, and water-cooling methods all at once. This innovation points to how the industry is considering options for advanced cooling technologies that achieve greater efficiency in lowering energy use.

Moreover, the government is actively encouraging digital transformation through initiatives such as the Digital Garden City Nation concept aimed toward integrating advanced technologies into urban planning and services. The governmental focus, in turn, accelerates the adoption of Data Center as a Service (DCaaS) models and propels the need for efficient data center cooling solutions. Recent statistics by the Ministry of Economy, Trade and Industry indicate that there is a strong drive towards energy-efficient technologies that reduce carbon emissions, hence encouraging data center operators to invest in sustainable cooling systems that will align with environmental regulations teamed with energy conservation goals.