CapitaLand Investment’s Bold Leap into Japan’s Data Centre Market
February 5, 2025, 3:34 pm
Location: United States, Kansas, Winfield
Employees: 1001-5000
Founded date: 2011
Total raised: $820K
CapitaLand Investment Limited (CLI) is making waves in the tech landscape with its recent acquisition in Osaka, Japan. This move marks CLI's first foray into the Japanese data centre market, a strategic decision that echoes the growing demand for digital infrastructure. With an investment exceeding S$900 million (around US$700 million), CLI is not just dipping its toes; it’s diving headfirst into a sea of opportunity.
The data centre will boast a power capacity of 50 megawatts, a significant figure that underscores the scale of this project. This acquisition is more than a mere expansion; it’s a testament to CLI’s robust global network and its knack for identifying lucrative opportunities. Since 2021, CLI has added 23 data centres to its portfolio, a clear indication of its aggressive growth strategy.
Japan is a prime target. The country is projected to experience a compound annual growth rate of 10% in its data centre market, swelling from US$23.8 billion in 2023 to US$38.7 billion by 2028. This growth is fueled by the digital revolution sweeping across Asia, making Japan a Tier 1 data centre market, second only to China. Major players like Amazon Web Services and Google Cloud are already entrenched in Osaka, creating a bustling hub for data services.
CLI’s Senior Executive Director, who oversees the data centre business, highlighted the strategic nature of this acquisition. It aligns with CLI’s digitalisation investment theme and enhances its geographical footprint in Japan. The company’s strong balance sheet allows it to invest in quality assets, setting the stage for future private funds. The Osaka data centre is positioned to capture demand in an established cluster, making it a timely investment.
The facility will be designed with sustainability at its core. It aims for certification under the Leadership in Energy and Environmental Design (LEED) standards, reflecting a commitment to environmental responsibility. Advanced cooling technologies and energy-saving solutions will be integrated into the design, ensuring efficiency in energy and water usage. This focus on sustainability is not just a trend; it’s a necessity in today’s eco-conscious market.
CLI’s global data centre capabilities are extensive. The company has investments across nine countries, including South Korea, India, and several European nations. This international presence provides CLI with a wealth of experience in investing, designing, and operating data centres. The recent agreement between CapitaLand India Trust and a global hyperscaler for data centres in India further illustrates CLI’s ability to forge strategic partnerships.
The localised teams in each country are led by seasoned professionals, each with over 25 years of industry experience. This expertise is complemented by a global Centre of Excellence for data centres, ensuring that CLI remains at the forefront of the industry. The appointment of Kenny Khow, with over 30 years of experience, to oversee CLI’s data centre strategy is a clear signal of the company’s commitment to excellence.
As the digital landscape evolves, so does the demand for data centres. The rapid adoption of artificial intelligence and digital technologies is driving this growth. Investors are keen, with 97% planning to increase their investments in data centres. CLI is poised to capitalize on this trend, having raised approximately US$600 million for its data centre development funds in Asia since October 2020.
However, the path is not without challenges. The global data centre market is competitive, with numerous players vying for a share. The need for innovative solutions and sustainable practices is paramount. CLI’s focus on energy efficiency and environmental impact positions it well in this competitive landscape.
In conclusion, CapitaLand Investment’s entry into Japan’s data centre market is a bold and strategic move. With significant investment, a commitment to sustainability, and a strong global network, CLI is well-equipped to navigate the complexities of this growing sector. As the digital world continues to expand, the demand for data centres will only increase. CLI’s proactive approach positions it as a key player in this evolving landscape, ready to harness the opportunities that lie ahead. The future is bright for CLI in Japan, and the company is set to make a lasting impact in the data centre arena.
The data centre will boast a power capacity of 50 megawatts, a significant figure that underscores the scale of this project. This acquisition is more than a mere expansion; it’s a testament to CLI’s robust global network and its knack for identifying lucrative opportunities. Since 2021, CLI has added 23 data centres to its portfolio, a clear indication of its aggressive growth strategy.
Japan is a prime target. The country is projected to experience a compound annual growth rate of 10% in its data centre market, swelling from US$23.8 billion in 2023 to US$38.7 billion by 2028. This growth is fueled by the digital revolution sweeping across Asia, making Japan a Tier 1 data centre market, second only to China. Major players like Amazon Web Services and Google Cloud are already entrenched in Osaka, creating a bustling hub for data services.
CLI’s Senior Executive Director, who oversees the data centre business, highlighted the strategic nature of this acquisition. It aligns with CLI’s digitalisation investment theme and enhances its geographical footprint in Japan. The company’s strong balance sheet allows it to invest in quality assets, setting the stage for future private funds. The Osaka data centre is positioned to capture demand in an established cluster, making it a timely investment.
The facility will be designed with sustainability at its core. It aims for certification under the Leadership in Energy and Environmental Design (LEED) standards, reflecting a commitment to environmental responsibility. Advanced cooling technologies and energy-saving solutions will be integrated into the design, ensuring efficiency in energy and water usage. This focus on sustainability is not just a trend; it’s a necessity in today’s eco-conscious market.
CLI’s global data centre capabilities are extensive. The company has investments across nine countries, including South Korea, India, and several European nations. This international presence provides CLI with a wealth of experience in investing, designing, and operating data centres. The recent agreement between CapitaLand India Trust and a global hyperscaler for data centres in India further illustrates CLI’s ability to forge strategic partnerships.
The localised teams in each country are led by seasoned professionals, each with over 25 years of industry experience. This expertise is complemented by a global Centre of Excellence for data centres, ensuring that CLI remains at the forefront of the industry. The appointment of Kenny Khow, with over 30 years of experience, to oversee CLI’s data centre strategy is a clear signal of the company’s commitment to excellence.
As the digital landscape evolves, so does the demand for data centres. The rapid adoption of artificial intelligence and digital technologies is driving this growth. Investors are keen, with 97% planning to increase their investments in data centres. CLI is poised to capitalize on this trend, having raised approximately US$600 million for its data centre development funds in Asia since October 2020.
However, the path is not without challenges. The global data centre market is competitive, with numerous players vying for a share. The need for innovative solutions and sustainable practices is paramount. CLI’s focus on energy efficiency and environmental impact positions it well in this competitive landscape.
In conclusion, CapitaLand Investment’s entry into Japan’s data centre market is a bold and strategic move. With significant investment, a commitment to sustainability, and a strong global network, CLI is well-equipped to navigate the complexities of this growing sector. As the digital world continues to expand, the demand for data centres will only increase. CLI’s proactive approach positions it as a key player in this evolving landscape, ready to harness the opportunities that lie ahead. The future is bright for CLI in Japan, and the company is set to make a lasting impact in the data centre arena.