Lendlease is to develop its first data centre, estimated to have an end-value of A$800m (€488m), in Greater Tokyo through Lendlease Data Centre Partners (LLDCP).

The phased development is planned to deliver more than 60,000sqm of gross floor area. Close to half of the site has been pre-leased.

Andrew Gauci, Lendlease managing director of Japan and head of telecoms and data infrastructure, Asia, said: “Demand for data centres in Asia-Pacific is set to grow exponentially, with internet-related services usage soaring due to the pandemic.”

Demand for data centres had surged during the ongoing COVID-19 pandemic, he said, with digitalisation emerging as a top priority for businesses amid an overall shift to a digital-led economy.

The Tokyo project is the first data centre development under the LLDCP vehicle, set up in 2019, and is funded 20% by Lendlease and 80% by a global sovereign wealth fund. Including debt, the vehicle has an initial investment capacity of US$1bn (€842m).

The fund’s mandate covers Australia, China, Japan, Malaysia and Singapore, and includes both completed assets and new development opportunities.

Lendlease chief executive officer, Asia, Justin Gabbani, said: “This partnership is an exemplar of our updated strategy in action, leveraging our competitive edge and creating value with our partners.”

Construction will commence later this year, with the initial phase to be completed by early 2024.

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