CapitaLand Investment to Develop First Data Centre in Japan for Over S$900 Million
- Editor
- Feb 3
- 2 min read
What's Happening: CapitaLand Investment Limited (CLI) is expanding its global data centre portfolio by acquiring a freehold land parcel in Osaka to develop its first data centre in Japan. The project will involve a total investment of more than S$944.3 million and will have 50 megawatts of power capacity.
The Key Moves:
CLI has added 23 data centres to its global portfolio since 2021, bringing CapitaLand Group's total to 27 across Asia and Europe.
The Osaka data centre will be AI-ready and designed with sustainability features, aiming for LEED or equivalent Japanese green certification.
CLI plans to use this acquisition to seed a future data centre fund, leveraging strong institutional interest in the sector.
By The Numbers :
Total investment for the Osaka data centre project: S$944.3 million
CapitaLand Group's data centre portfolio: 27 facilities with about 800 MW of power
CLI's assets under management as of September 2024: S$134 billion
Key Quotes:
"CLI's data centre portfolio has expanded significantly over the last few years and we are delighted to expand our footprint to Japan," said Manohar Khiatani, Senior Executive Director of CLI.
"Leveraging CLI's global network and on-ground expertise, we have secured this off-market opportunity in Osaka with 50 MW of power," stated Michelle Lee, Managing Director, Private Funds (Data Centre) of CLI.
"Japan is a Tier 1 data centre market poised for tremendous growth. It is projected to expand at a compound annual growth rate of 10%, from US$23.8 billion in 2023 to US$38.7 billion in 2028," explained Manohar Khiatani.
The Bottom Line: CapitaLand Investment's move into the Japanese data centre market represents a strategic expansion of its global portfolio. The investment aligns with CLI's focus on digital infrastructure and positions the company to capitalize on the growing demand for data centres in Asia's largest market outside of China.
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