Cli Develop First Data Centre Japan Total Investment 9443 Mil
CapitaLand Investment (CLI) has recently acquired a freehold land parcel in Osaka, Japan to develop its first data centre in the country. The total investment for this project is estimated to be over US$700 million, equivalent to $944.3 million. With a secured power capacity of 50 megawatts (MW), the data centre is expected to support advanced artificial intelligence (AI) capabilities.
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The development of this data centre will incorporate energy-saving solutions, such as advanced cooling technologies, and adhere to industry best practices for temperature management. In addition, CLI has committed to using products with zero ozone depletion potential or a global warming potential (GWP) of less than 100, in order to minimize any potential environmental impact.
According to Manohar Khiatani, senior executive director of CLI, who is in charge of the group’s data centre business, this acquisition aligns perfectly with CLI’s investment strategy in digitalization and further strengthens the group’s presence in Japan, which is one of their key markets.
Khiatani also commented on the strong financial standing of CLI, which allows them to strategically invest in quality assets, including data centres for their future private funds. He added that Japan is considered a Tier 1 data centre market, with tremendous growth potential.
The Japanese data centre market is expected to grow at a compound annual growth rate (CAGR) of 10% from US$23.8 billion in 2023 to US$38.7 billion in 2038. It is also the largest data centre market in Asia-Pacific outside of China, with a capacity of 1.4 gigawatts, as highlighted by Khiatani.
Khiatani also mentioned the presence of major cloud service providers in Osaka, such as Amazon Web Services, Google Cloud, Microsoft Azure and Oracle, making the location a prime spot for the data centre. He believes that the acquisition is well-positioned to capture the demand in Osaka’s established data centre cluster.
Michelle Lee, managing director of private funds (data centre) at CLI, also expressed her confidence in the growing demand for data centres, which is expected to surpass the supply in the near future. She revealed that there is a strong interest from institutional investors in data centre investments, with 97% of them planning to increase their investments in this sector.
Furthermore, Lee shared that CLI has raised US$600 million for its data centre development funds in Asia since October 2020. She added that the company will continue to identify compelling investment opportunities for its private fund investors and build upon the momentum of its recent acquisitions.
CLI currently owns 27 data centres across Asia and Europe, with a total power capacity of 800 MW and assets under management of approximately $6 billion. The company has added 23 data centres to its global portfolio since 2021.
In conclusion, CLI’s recent acquisition in Osaka, Japan reflects its commitment towards digitalization and expanding its presence in key markets. With strong financial backing and a focus on identifying attractive investment opportunities, the company is poised to further grow its data centre business. On Feb 3, CLI’s shares closed 4 cents lower or 1.63% down at $2.42.