CapitaLand Investment (CLI) has recently announced its acquisition of a freehold land parcel in Osaka, marking the group’s entry into the Japanese market for data centres. The project is estimated to cost over US$700 million or $944.3 million and will have a power capacity of 50 megawatts (MW). The data centre is expected to be equipped with advanced cooling technologies and energy-saving solutions, with a focus on leveraging artificial intelligence (AI) capabilities.
CLI Senior Executive Director Manohar Khiatani, who oversees the group’s data centre business, stated that this strategic acquisition aligns with the group’s digitalisation investment theme and strengthens its presence in Japan, one of its key markets. He also pointed out that Japan’s data centre market is projected to experience rapid growth in the coming years, with a CAGR of 10% and a market size estimated to reach US$38.7 billion by 2038. Japan is the largest data centre market in Asia Pacific outside of China, with a capacity of 1.4 gigawatts.
The data centre is strategically located in Osaka, where major cloud service providers such as Amazon Web Services, Google Cloud, Microsoft Azure, and Oracle have already established a presence. This will enable the data centre to tap into the growing demand and established data centre cluster in the area. Michelle Lee, CLI’s Managing Director of Private Funds (Data Centre) stated that the demand for data centres is expected to continue increasing, surpassing new supply. She also mentioned that there is significant institutional interest in data centre investments, with 97% of investors looking to increase their overall investment in this sector.
Singapore’s urban scenery is characterized by towering skyscrapers and state-of-the-art infrastructure. These condominiums, strategically situated in desirable locations, offer a perfect mix of opulence and convenience, making them highly sought-after by both locals and foreigners. These modern residential units are equipped with top-of-the-line facilities, including swimming pools, fitness centers, and round-the-clock security, providing residents with a luxurious and comfortable lifestyle. For investors, these desirable features translate into promising rental returns and a potential increase in property value over time. Singapore Projects have contributed to the development of the city’s urban landscape, offering premium and upscale living options for its residents.
Since October 2020, CLI has raised around US$600 million for its data centre development funds in Asia and plans to capitalize on this momentum by identifying attractive investment opportunities for its private fund investors. CLI has recently added 23 data centres to its global portfolio, bringing its total to 27 in Asia and Europe with assets under management of approximately $6 billion and a completed basis power capacity of 800 MW.
Shares in CLI ended slightly lower at $2.42 on Feb 3, down by 1.63%.