Japan Data Center Facilities Market Expands: Report

The data center facilities market in Japan will see continuing expansion, according to a new study.

International Data Corporation (IDC (News - Alert)) cites several reasons why the expansion is taking place. For instance, after Japan’s recent earthquake, more businesses want to move their corporate IT infrastructure to data centers operated by IT service providers. Also, more businesses are opting to move from their own servers to cloud-based IT services.

“These trends have led to the construction of numerous new large-scale data centers in Japan, expanding the scale of investment in datacenter facilities and equipment,” the IDC report, “Japan Datacenter Equipment and Facilities 2013–2016 Forecast and 2012 Review: UPS and Cooling Systems,” said.

For example, data center cooling systems in Japan are predicted to see a compound annual growth rate (CAGR) of 3.2 percent from 2012 to 2016. The data center uninterruptible power supply (UPS) market between 2012 and 2016 in Japan is predicted to increase an average annual growth rate of 4.3 percent.

The report also notes how the typical size of data centers is expanding. There is also more focus at data centers on conservation technology to decrease energy use and lower costs.

"The market for data center cooling and UPS systems is looking for larger-capacity products suited to large-scale data centers and solutions that take advantage of energy conservation technologies to reduce operational costs," Mimei Ito, research manager of IT services of IDC Japan, explained in the statement.

These trends come as the Asia-Pacific region is seeing “unprecedented demand” for data centers and public IaaS (infrastructure as a service) – due to more mobile devices and globalization of business operations, TMCnet reported.

For instance, Oracle (News - Alert) has introduced a new data center in Japan. It provides Oracle RightNow Cloud Service. Oracle RightNow Cloud Service offers contact center, social and Web “experiences for a unified, cross-channel service solution in the cloud, enabling organizations to increase sales and adoption, build trust and strengthen relationships, and reduce costs and effort,” TMCnet reported. “This new data center equips organizations in Japan to deliver enhanced customer experiences.”