CapitaLand Investment Limited (CLI) has acquired a plot of land in Osaka to develop its first data centre in Japan, a 50MW facility, with a total investment of over US$700m (€678m).
Manohar Khiatani, senior executive director of CLI, who oversees the group’s data centre business, said: “The acquisition is not only aligned with CLI’s digitalisation investment theme but also enhances CLI’s geographical spread, deepening its presence in Japan, one of CLI’s focus markets.”
Khiatani said Japan was a Tier 1 data centre market poised for tremendous growth. The country’s digital infrastructure sector was projected to expand at a compound annual growth rate of 10% from US$23.8bn in 2023 to US$38.7bn in 2028.
“It is also Asia-Pacific’s largest data centre market outside of China with a 1.4GW capacity, with both Tokyo and Osaka being key data centre hubs in the region.”
Michelle Lee, managing director of private data centre funds at CLI, said: “With the rapid adoption of digitalisation and artificial intelligence globally and especially in Asia, data centre demand is expected to enjoy double-digit growth and outstrip new supply.
“There is strong institutional interest in data centre investments, with 97% of investors planning to increase their overall investment in data centres.” Since October 2020, CLI had successfully raised about US$600m for the group’s data centre development funds in Asia, Lee said.
“CLI continues to develop new data centre fund products. We will also build on our investment momentum and identify compelling investment pipeline opportunities for our private fund investors.”
With this latest acquisition, CLI has added 23 data centres to its global portfolio since 2021.
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