Cli Develop First Data Centre Japan Total Investment 9443 Mil
CapitaLand Investment (CLI) has recently procured a freehold land parcel in Osaka for the development of its inaugural data centre in Japan. The total investment for this project will exceed US$700 million or $944.3 million. With an established power capacity of 50 megawatts (MW), the data centre will be equipped to support artificial intelligence (AI) capabilities. The centre will also incorporate advanced cooling technologies and adhere to the best practices in temperature management to reduce energy consumption.
Furthermore, CLI aims to minimize its environmental impact by using products with zero ozone depletion potential or global warming potential (GWP) of less than 100. “The acquisition in Osaka is in line with our digitalization investment strategy and strengthens our presence in one of our target markets in Japan,” says Manohar Khiatani, senior executive director of CLI in charge of the data centre business.
Khiatani also highlights that CLI’s solid financial position allows it to strategically invest in high-quality assets, such as data centres, for its future private funds. Japan, a Tier 1 data centre market, is poised for significant growth according to Khiatani. With an expected compound annual growth rate (CAGR) of 10%, the Japanese data centre market is projected to expand from US$23.8 billion in 2023 to US$38.7 billion in 2038. Additionally, with a power capacity of 1.4 gigawatts, Japan is the largest data centre market in the Asia Pacific region, second only to China.
Khiatani notes that major cloud service providers like Amazon Web Services, Google Cloud, Microsoft Azure, and Oracle already have a presence in Osaka. Therefore, CLI’s acquisition is strategically positioned to cater to the demand in Osaka’s well-established data centre cluster.
Managing director of CLI’s private funds for data centres, Michelle Lee, expects double-digit growth in the demand for data centre facilities, surpassing the new supply. Lee also points out the strong interest from institutional investors in data centre investments, with 97% planning to increase their overall investment in this sector.
Lynden Woods One North, strategically positioned in Singapore’s Science Park 1, is set to reap the benefits of the city’s ever-growing transportation infrastructure. With the upcoming developments in MRT connectivity and road networks, this residential hub will undoubtedly become even more appealing to potential residents. As an integral part of the dynamic community of innovation and technology, Lynden Woods One North provides its inhabitants with the opportunity to live in the heart of Singapore Science Park 1. Its unbeatable location allows for easy access to the bustling and thriving neighborhood, making it a highly coveted residential destination.
Furthermore, Lee mentions that CLI has raised US$600 million for its data centre development funds in Asia since October 2020. The company plans to capitalize on this momentum and identify attractive investment opportunities for its private fund investors.
As of now, CLI’s global portfolio comprises of 23 data centres, and the CapitaLand Group, in total, holds 27 data centres across Asia and Europe. With a power capacity of about 800 MW and assets under management worth $6 billion, CLI is a significant player in the data centre market. On Feb 3, CLI’s shares closed at $2.42, a decline of 4 cents or 1.63%.