Real estate asset manager, CapitaLand Investment (CLI), announced that it will be investing over USD 700 million (SGD 944.3 million) to build its first data center in Japan.
The company has already acquired a piece of land in Osaka, Japan, along with 50 megawatts (MW) of power capacity for the project. This new development brings CLI's total number of data centers to 23 since it began development in 2021 and aims to meet the growing demand for artificial intelligence (AI)-driven digital infrastructure.
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CLI's Managing Director of Private Funds (Data Center), Michelle Lee, stated that the advent of digitalization and artificial intelligence, especially in Asia, is expected to drive double-digit growth in data center demand, surpassing new supply. Since October, 2020, CLI has successfully raised approximately USD 600 million for its data center development in Asia. The CapitaLand Group currently owns 27 data centers in Asia and Europe, managing around 800 MW of power and approximately USD 6 billion in assets.
Overseeing the data center business as CLI's Senior Executive Director, Manohar Khiatani mentioned that Japan's Tier I data center market is forecast to grow at a rate of 10% annually, reaching USD 38.7 billion by 2028 (a notable increase from the USD 23.8 billion recorded in 2023). Japan is considered the largest data center market in the Asia Pacific outside of China, with Tokyo and Osaka serving as key hubs.
Following the company’s latest announcement, CLI’s shares increased by five cents, or 2.1%, to USD 2.47 during midday trading on February, 4.
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