CapitaLand Investment (CLI) has recently announced its acquisition of a freehold land parcel in Osaka, Japan for the development of its first data centre in the country. The project, which is estimated to cost over US$700 million or $944.3 million, will be equipped with 50 megawatts (MW) of power capacity and will incorporate advanced cooling technologies and other energy-saving solutions to support artificial intelligence (AI) capabilities.
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CLI has emphasized its commitment to sustainable development by ensuring that the data centre will use products with zero ozone depletion potential or with global warming potential (GWP) of less than 100, in line with industry best practices for temperature management.
Manohar Khiatani, senior executive director of CLI, notes that the acquisition of this land aligns with the company’s digitalization investment strategy and further expands its presence in Japan – a key market for CLI. Khiatani highlights the significant growth potential of the Japanese data centre market, which is projected to expand at a compound annual growth rate (CAGR) of 10% from US$23.8 billion in 2023 to US$38.7 billion in 2038. He also points out that Japan is currently the largest data centre market in Asia Pacific, outside of China, with a 1.4 gigawatt capacity.
CLI’s managing director of private funds (data centre), Michelle Lee, also notes the strong demand for data centres and the expected double-digit growth in the sector, which is expected to outstrip new supply. Lee highlights the increasing institutional interest in data centre investments, with 97% of investors planning to increase their overall investment in data centres.
Since October 2020, CLI has successfully raised US$600 million for its data centre development funds in Asia. With this latest acquisition, CLI aims to continue identifying and investing in compelling opportunities for its private fund investors and build on the momentum of its recent data centre portfolio expansions. Currently, the CapitaLand Group boasts 27 data centres across Asia and Europe, with a combined power capacity of approximately 800 MW and assets under management (AUM) of around $6 billion.
CLI’s stock closed at $2.42 on Feb 3, with a decrease of 1.63%.