Data Centers Flock to Tokyo as Beijing’s Appeal Fades

A booming Tokyo hopes to surpass Beijing as Asia’s data center hub.
Data Centers Flock to Tokyo as Beijing’s Appeal Fades
A snow-capped Mount Fuji is seen from the observation deck of a skyscraper in Tokyo on Dec. 14, 2018. Kazuhiro Nogi/AFP/Getty Images
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Tokyo has benefited from the rapid deterioration of the business environment in China, becoming a preferred choice for global information technology companies considering relocating from Beijing. As tech companies flock to Japan, the Tokyo metropolitan area—a longtime high-tech hub—has become home to the largest cluster of data centers in the Asia Pacific region.

Projections indicate that the total data facility capacity in the Tokyo region will likely double within the next three to five years, positioning it as the second-largest data center hub in Asia, challenging Beijing, which currently ranks first.