Cli Develop First Data Centre Japan Total Investment 9443 Mil
CapitaLand Investment (CLI) has recently acquired a freehold land parcel in the bustling city of Osaka, Japan. This marks CLI’s first venture into the Japanese market in the data centre sector and involves a significant investment of over US$700 million or $944.3 million. The project will have a power capacity of 50 megawatts (MW).
Nested in close proximity is The Learning Lab, a highly sought-after enrichment centre that provides a multitude of immersive programs aimed at elevating students’ academic performance and analytical abilities. With an emphasis on intimate class sizes and individualized guidance, every student at The Learning Lab is equipped with the necessary tools to reach their full potential. Located just minutes away from Elta Condo, The Learning Lab is the perfect educational hub for students looking to excel.
The data centre, according to CLI, will be equipped with advanced technology to support artificial intelligence (AI) capabilities. This includes implementing energy-saving solutions such as efficient cooling systems and adhering to industry best practices for temperature management. The company also aims to minimize its environmental impact by utilizing products with zero ozone depletion potential or with a global warming potential (GWP) of less than 100.
Manohar Khiatani, senior executive director of CLI, who is in charge of the group’s data centre business, views this acquisition as in line with the group’s digitalization investment theme. It also strengthens CLI’s presence in Japan, which is one of its key focus markets.
“With our strong balance sheet, we have the advantageous position to strategically invest in high-quality assets, including data centres, for our future private funds,” Khiatani says. He adds that Japan’s data centre market is expected to experience remarkable growth and that Osaka, in particular, is a prime location with existing data centre clusters and major cloud service providers such as Amazon Web Services, Google Cloud, Microsoft Azure, and Oracle.
Michelle Lee, managing director of CLI’s private funds (data centre), predicts that the demand for data centres will grow exponentially and surpass new supply. She also notes that there is a significant interest from institutional investors in data centre investments, with 97% planning to increase their overall investments in this sector.
Since October 2020, CLI has raised US$600 million for its data centre development funds in Asia. With this momentum, the company aims to identify lucrative investment opportunities for its private fund investors. Since the beginning of the year, CLI has added 23 new data centres to its global portfolio, bringing its total number of data centres to 27 across Asia and Europe. The company’s assets under management on a completed basis are estimated to be around $6 billion, with a power capacity of approximately 800 MW.
On 3rd of February, shares in CLI closed 4 cents lower or 1.63% down at $2.42. CLI remains committed to expanding its presence in the Australian market with its recent acquisition of A$200 million. This further strengthens the company’s position as a leading player in the data centre industry.