CapitaLand Investment Limited (CLI), a prominent global real asset manager, has announced its acquisition of a freehold land parcel in Osaka, Japan, to develop its first data centre in the country. This project, requiring an investment exceeding US$700 million (S$944.3 million), will also secure 50 megawatts (MW) of power capacity. This marks a significant expansion of CLI’s data centre portfolio, which has grown by 23 centres since 2021.
The development aligns with CLI’s strategic focus on digitalisation and geographical diversification. Manohar Khiatani, Senior Executive Director of CLI, highlighted Japan’s status as a Tier 1 data centre market, expected to grow at a compound annual rate of 10% from US$23.8 billion in 2023 to US$38.7 billion in 2028. “Our acquisition is well-positioned to capture demand in Osaka’s established data centre cluster,” Khiatani stated.
Ms Michelle Lee, Managing Director of Private Funds (Data Centre) at CLI, noted the strong institutional interest in data centre investments, with 97% of investors planning to increase their investments. “Leveraging CLI’s global network, we have secured this off-market opportunity in Osaka,” she said.
The Osaka data centre will be AI-ready and designed with sustainability in mind, adhering to Leadership in Energy and Environmental Design (LEED) standards. It will incorporate advanced cooling technologies and energy-efficient practices to minimise environmental impact.
CLI’s expansion into Japan underscores its commitment to enhancing its data centre capabilities and tapping into the growing demand for digital infrastructure in Asia.
