CapitaLand Invests $700M in First Japan Data Centre
CapitaLand Investment Limited (CLI) will invest about US$700 million (JPY110 billion) to build its first data centre in Japan. This is a big step in expanding its digital infrastructure in Asia.
A New Data Centre in Greater Tokyo
CLI plans to build the data centre on a 6.5-hectare freehold site in Greater Saitama. When finished, it will offer up to 100 megawatts (MW) of IT capacity. This will make it one of Japan’s largest hyperscale data centres.
The company secured the site through a forward purchase agreement. Construction will start in the second quarter of 2025. CLI aims to complete it by 2027. The site sits close to major power substations and fibre routes. This location will provide strong connectivity and reliable infrastructure.
Growing CLI’s Digital Network
This project supports CLI’s plan to grow its digital infrastructure portfolio. CLI already owns data centres in Singapore, South Korea, and China. Now, it adds Japan to the list.
Demand for data centres is rising in Japan. More firms move to cloud computing. They also use AI and digitise their businesses. These trends increase the need for large data centres.
Japan: A Key Growth Market
Patrick Boocock, CEO of CLI Private Equity Alternative Assets, said, “Japan is an important market for us. This project fits well with our existing network. It helps us serve hyperscale and enterprise customers. They want capacity in a stable and well-connected place.”
Focus on Sustainability
CLI will build the data centre with sustainability in mind. The company plans to use energy-saving technology and renewable energy. It aims to meet green building standards and cut carbon emissions.
Japan’s Data Centre Market is Expanding
Japan is the second-largest data centre market in Asia, after China. Experts expect steady growth as industries continue digital transformation.
Greater Tokyo is a popular spot for data centres. It offers stable infrastructure and is near urban centres. Also, the government has clear rules that help businesses.
Strengthening Income and Market Position
This investment will increase CLI’s steady income. It also strengthens CLI’s role in the alternative real estate sector in Asia.
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