Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
CapitaLand Investment Limited (CLI) will develop its first data-centre in Japan, investing over USD 700 million on a newly acquired freehold land-parcel in Osaka with 50 MW power capacity secured. This expands CLI's data-centre portfolio to 27 facilities across Asia and Europe, managing assets worth SGD 6 billion and 800 MW of power. Positioned in Osaka's established data-centre hub, the facility will be AI-ready, incorporating sustainable designs in line with LEED standards. Japan's growing data centre market, projected to reach USD 38.7 billion by 2028, aligns with CLI's strategy. Major cloud providers like AWS and Google already operate there.
CapitaLand Investment Limited (CLI), a global real asset manager, is set to develop its first data centre in Japan. The company has acquired a freehold land parcel in Osaka, securing 50 megawatts (MW) of power capacity for the project, which will involve a total investment of over USD 700 million. This acquisition aligns with CLI's strategy of expanding its presence in key digital infrastructure markets and marks a significant addition to its growing data centre portfolio. Since 2021, CLI has added 23 data centres to its portfolio, bringing its total to 27 facilities across Asia and Europe. Advertisement
Collectively, these data centres represent about 800 MW of power capacity and SGD 6 billion in assets under management. CLI's decision to enter the Japanese market reinforces its commitment to building a geographically diverse portfolio of high-quality data centres. Japan is Asia Pacific's largest data centre market outside China, with a 1.4-gigawatt capacity. Tokyo and Osaka serve as key hubs for data centre operations, attracting major cloud providers such as Amazon Web Services (AWS), Google Cloud, Microsoft Azure, and Oracle.
Manohar Khiatani, Senior Executive Director of CLI, highlighted Japan's potential for growth, noting that the data centre market is projected to grow at a compound annual rate of 10%, from USD 23.8 billion in 2023 to USD 38.7 billion in 2028. He emphasized that CLI's strong balance sheet enables the company to invest strategically in quality assets, including data centres for future private funds. The Osaka facility will be well-positioned to capture rising demand in the city's established data centre cluster.
Michelle Lee, Managing Director of Private Funds (Data Centre) at CLI, pointed out that the rapid adoption of digitalisation and artificial intelligence (AI) globally, particularly in Asia, is driving strong demand for data centres. Institutional interest in this sector remains high, with 97% of investors planning to increase their investments in data centres. CLI has raised approximately USD 600 million (SGD 810 million) for its data centre development funds in Asia since October 2020 and continues to explore new investment opportunities for its private fund investors.
The Osaka data centre will be designed to meet advanced sustainability standards. It will be AI-ready and certified according to Leadership in Energy and Environmental Design (LEED) or equivalent Japanese green standards. Energy-saving features such as advanced cooling technologies and optimized temperature management will enhance the facility's efficiency, while products with zero ozone depletion potential and low global warming potential will minimize environmental impact.
With data centre investments across nine countries, including Singapore, Japan, South Korea, India, China, the United Kingdom, France, the Netherlands, and Switzerland, CLI continues to strengthen its vertically integrated data centre capabilities. This expertise enables CLI to partner with investors and capitalize on growing global demand in the sector.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
