IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

Tencent to open third data centre in Japan

There is currently over 183 MW of data centre capacity under construction in the country

Tencent Holdings is planning to open a third data centre in Japan, after entering the country’s cloud market in 2019.

The Chinese technology giant’s Japanese business has posted triple-digit annual growth, driven by cloud services for games, said Poshu Yeung, senior vice president of the company’s international cloud operations, in an interview with Nikkei Asia.

"We are considering a third site for a data centre," said Yeung.  "We have the experience, so this won't take much time."

The company entered Japan’s cloud market in 2019 but hasn’t shared its Japanese revenue or capital expenditure for data centres.

After entering overseas markets in 2016, Tencent currently has a presence in over 10 countries and regions. It currently operates 30 data centres outside China with new additions expected in Brazil and Indonesia, shared Yeung.

"Tencent will tap its experience in the gaming sector to support game companies in Japan and South Korea in expanding their customer bases to Brazil and Southeast Asia," explained Yeung.

He added that in the US and Europe, orders are growing for cloud services designed to link businesses there with their offices in China. Yeung revealed that US companies are not avoiding Chinese cloud services much amid trade frictions either.

What is Japan’s data centre market like?

The Japanese data centre market was valued at $6.9 billion in 2021 and is expected to reach $10 billion by 2026, according to research firm Arizton. In the country, Tokyo and Osaka were major data centre investment destinations in 2020, with other regions like Jobe, Nagoya, and Yokohama also projected to grow.

The largest data centre companies in Japan include Equinix & GIC, MC Digital Realty, NTT Communications, Colt DCS, and NEC Corporation. There are 208 data centres in the country, stated research from Cloudscene, with most of them located around Tokyo and Osaka. 

Related Resource

The Total Economic Impact™ of IBM Watson Assistant

Cost savings and business benefits enabled by Watson Assistant

Whitepaper cover with titles and blue shaded line graphics and shapesFree Download

In 2021, Greater Tokyo accounted for 57% of the distribution of the net supply of Asia Pacific tier I colocation data centre markets, according to CBRE Research. New data centre supply in four-tier I Asia Pacific markets, Greater Tokyo, Hong Kong, Sydney, and Singapore, totalled 305 MW in the second half of 2021. Two-thirds of this new supply was found in Greater Tokyo. Additionally, Chinese hyperscale cloud companies like Alibaba and Tencent have been early movers in emerging South East Asia, but those from the US are now catching up.

There is currently over 183 MW of data centre capacity under construction in Japan, research from Cushman & Wakefield revealed. This comes as the country’s government announced an investment of $46.8 billion in 2022 for accelerating rural-urban digital integration under its Digital Garden City State vision. This includes building over a dozen regional data centres in the next five years, completing the nationwide submarine cable network in three years, and bringing fibre optics into universal service by 2030.

Featured Resources

Accelerating AI modernisation with data infrastructure

Generate business value from your AI initiatives

Free Download

Recommendations for managing AI risks

Integrate your external AI tool findings into your broader security programs

Free Download

Modernise your legacy databases in the cloud

An introduction to cloud databases

Free Download

Powering through to innovation

IT agility drive digital transformation

Free Download

Recommended

Skills shortages expected to hit over 90% of Australian and New Zealand businesses
Careers & training

Skills shortages expected to hit over 90% of Australian and New Zealand businesses

28 Jun 2022
Why India wants to become a chipmaking powerhouse
components

Why India wants to become a chipmaking powerhouse

28 Jun 2022
Samsung fined $14 million over misleading water resistance claims across its Galaxy smartphones
Mobile Phones

Samsung fined $14 million over misleading water resistance claims across its Galaxy smartphones

23 Jun 2022
Toshiba eyes $22bn buyout offer in bid to go private
Business strategy

Toshiba eyes $22bn buyout offer in bid to go private

23 Jun 2022

Most Popular

Salaries for the least popular programming languages surge as much as 44%
Development

Salaries for the least popular programming languages surge as much as 44%

23 Jun 2022
The UK's best cities for tech workers in 2022
Business strategy

The UK's best cities for tech workers in 2022

24 Jun 2022
LockBit 2.0 ransomware disguised as PDFs distributed in email attacks
Security

LockBit 2.0 ransomware disguised as PDFs distributed in email attacks

27 Jun 2022