To construct its first data centre in Japan, Singapore’s CapitaLand invested $700 M
With a total investment of over $700 million, CapitaLand Investment Limited (CLI), a global real asset manager with headquarters in Singapore, has purchased a freehold land parcel in Osaka to build its first data center in Japan.
The project has secured 50 megawatts (MW) of power capacity, according to a statement released by CLI on Tuesday.
CLI’s robust global multi-asset class network and deal sourcing capabilities are demonstrated by the acquisition.
In addition to having cutting-edge architecture with sustainability at its center, the data center in Osaka will be prepared for artificial intelligence (AI).
Leadership in Energy and Environmental Design (LEED) or a comparable Japanese green-certification standard will be followed in its design, construction, and certification.
To improve energy and water usage efficiency, the facility will incorporate energy-saving solutions like cutting-edge cooling technologies and implement industry best practices in temperature control.
To further reduce its impact on the environment, the data center will use products with a global warming potential (GWP) of less than 100 or zero ozone depletion potential.
Since 2021, CLI has expanded its global portfolio by 23 data centers with this most recent plan.
The CapitaLand Group manages approximately S$6 billion ($4.41 billion) in assets on a completed basis, including 27 data centers with 800 MW of power spread across Asia and Europe.
“CLI’s data center portfolio has expanded significantly over the last few years and we are delighted to expand our footprint to Japan,
“The acquisition is not only aligned with CLI’s digitalization investment theme but also enhances CLI’s geographical spread, deepening its presence in Japan, one of CLI’s focus markets,” said Manohar Khiatani, Senior Executive Director of CLI, who oversees the group’s data center business.
He claims that CLI has a clear advantage in making strategic investments in high-quality assets, such as data centers, for our future private funds because of its robust balance sheet.
Japan is a Tier 1 data center market with enormous growth potential, he emphasized.
“It is projected to expand at a compound annual growth rate of 10 percent, from $23.8 billion in 2023 to $38.7 billion in 2028,” he said.
With 1.4 gigawatts of capacity, Japan is also Asia Pacific’s largest data center market outside of China, he said, with Tokyo and Osaka serving as important data center hubs in the area.
“Major cloud service providers such as Amazon Web Services, Google Cloud, Microsoft Azure and Oracle already have a presence in Osaka,
“Our acquisition is hence well positioned to capture demand in Osaka’s established data center cluster,” he added.
