CapitaLand Investment to invest $944m to develop first data centre in Japan
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CapitaLand Investment has added 23 data centres to its portfolio since 2021.
PHOTO: BT FILE
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SINGAPORE - Real estate asset manager CapitaLand Investment (CLI) said on Feb 4 it will invest more than US$700 million (S$944.3 million) to develop its first data centre in Japan.
The company has already secured a freehold land parcel in Osaka, Japan, together with 50 megawatts (MW) of power capacity for the project.
With this move, CLI has added 23 data centres to its portfolio since 2021 as it targets demand for artificial intelligence-enabled digital infrastructure.
“With the rapid adoption of digitalisation and AI globally and especially in Asia, data centre demand is expected to enjoy double-digit growth and outstrip new supply,” said Ms Michelle Lee, CLI’s managing director of private funds (data centre).
She added that since October 2020, CLI has successfully raised about US$600 million for its data centre development funds in Asia.
CapitaLand Group currently owns 27 data centres in Asia and Europe with about 800MW of power and around $6 billion of assets under management on a completed basis.
Mr Manohar Khiatani, CLI senior executive director overseeing the group’s data centre business, said Japan’s Tier 1 data centre market is projected to expand at a compound annual growth rate of 10 per cent, from US$23.8 billion in 2023 to US$38.7 billion in 2028.
Japan is also Asia Pacific’s largest data centre market outside of China, with both Tokyo and Osaka being key hubs in the region, he said. Major cloud service providers such as Amazon Web Services, Google Cloud, Microsoft Azure and Oracle already have a presence in Osaka, he added.
Shares of CLI rose five cents, or 2.1 per cent, to $2.47 as at the midday trading break on Feb 4, after the company’s latest announcement.
