CapitaLand to Invest $700 Million in Osaka Data Centre

CapitaLand Investment (CLI) said on Tuesday it will invest more than US$700 million (S$944.3 million) to develop its first data centre in Japan, acquiring a freehold land parcel in Osaka with a secured power capacity of 50 megawatts (MW).

The Singapore-based real asset manager said the data centre will be “AI-ready” and designed with sustainability at its core, featuring advanced cooling technologies and energy-saving measures in line with international green certification standards.

The project, valued at over S$900 million, will also seed a future data centre fund, CLI added in a statement.

“This latest acquisition deepens our presence in Japan, a Tier 1 data centre market poised for tremendous growth,” said Senior Executive Director Manohar Khiatani, who oversees CLI’s data centre business.

He cited estimates projecting the country’s data centre market to grow at a compound annual rate of 10%, reaching US$38.7 billion by 2028.

With this development, CLI has added 23 data centres to its global portfolio since 2021, bringing the CapitaLand Group’s total data centre count to 27 across Asia and Europe.

The group’s existing facilities have around 800 MW of combined power capacity and S$6 billion of assets under management on a completed basis.

“There is strong institutional interest in data centre investments, with 97% of investors planning to increase their overall investment in data centres,” said Michelle Lee, Managing Director for Private Funds (Data Centre) at CLI.

She added that CLI has raised about US$600 million for its data centre development funds in Asia since October 2020 and will continue to seek “compelling investment pipeline opportunities” for its private fund investors.

CapitaLand Group’s data centre investments span nine countries, including Singapore, Japan, South Korea, India, China, the United Kingdom, France, the Netherlands and Switzerland.

The new Osaka site underscores CLI’s capacity to invest, design, develop and operate data centres globally, supported by its on-ground teams and a global Centre of Excellence for data centres.

(c) Business News Asia

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