Refers to a facility or institution where young children are cared for during the day, similar to 保育園.
See also: 保育園
This nursery school has a capacity of 20 children.
nursery room
Refers to a physical room designated for childcare, such as in a hospital, workplace, or public facility.
You can have your child looked after in the hospital's nursery room.
Compound of 保育 (childcare) + 室 (room). The term straightforwardly describes a room or facility for childcare.