CapitaLand Investment expands global data centre portfolio with development of its first data centre in Japan

The project will entail an investment of more thanS$900 millionand seed a future data centre fund

SINGAPORE,Feb. 4, 2025/PRNewswire/ -- CapitaLand Investment Limited (CLI), a leading global real asset manager, has acquired a freehold land parcel inOsakato develop its first data centre inJapanwhich will entail a total investment of more thanUS$700 million(S$944.3 million^[1]). 50 megawatts (MW) of power capacity have also been secured for the project.

The acquisition is a testament to CLI's strong global multi-asset class network and deal-sourcing capability. With this latest acquisition, CLI has added 23 data centres to its global portfolio since 2021. CapitaLand Group has 27 data centres acrossAsiaandEuropewith about 800 MW of power and aroundS$6 billionof assets under management on a completed basis.

MrManohar Khiatani, Senior Executive Director of CLI, who oversees the Group's data centre business said:"CLI's data centre portfolio has expanded significantly over the last few years and we are delighted to expand our footprint toJapan. The acquisition is not only aligned with CLI's digitalisation investment theme but also enhances CLI's geographical spread, deepening its presence inJapan, one of CLI's focus markets. CLI's strong balance sheet gives us the distinct advantage to invest strategically in quality assets including data centres for our future private funds.Japanis a Tier 1 data centre market poised for tremendous growth. It is projected to expand at a compound annual growth rate of 10%, fromUS$23.8 billionin 2023 toUS$38.7 billionin 2028^[2]. It is alsoAsia Pacific'slargest data centre market outside ofChinawith a 1.4 gigawatt capacity^[3], with bothTokyoandOsakabeing key data centre hubs in the region. Major cloud service providers such as Amazon Web Services, Google Cloud, Microsoft Azure and Oracle already have a presence inOsaka. Our acquisition is hence well-positioned to capture demand inOsaka'sestablished data centre cluster."

MsMichelle Lee, Managing Director, Private Funds (Data Centre) of CLI, said:"With the rapid adoption of digitalisation and artificial intelligence (AI) globally and especially inAsia, data centre demand is expected to enjoy double-digit growth and outstrip new supply. There is strong institutional interest in data centre investments, with 97% of investors planning to increase their overall investment in data centres^[4]. Leveraging CLI's global network and on-ground expertise, we have secured this off-market opportunity inOsakawith 50 MW of power. Since October 2020, CLI has successfully raised aboutUS$600 million(S$810 million) for our data centre development funds in Asia. CLI continues to develop new data centre fund products. We will also build on our investment momentum and identify compelling investment pipeline opportunities for our private fund investors."

The data centre inOsakawill be AI-ready and feature state-of-the-art design with sustainability at its core. It will be designed, built, and certified in accordance with Leadership in Energy and Environmental Design (LEED) or an equivalent Japanese green-certification standard. The facility will integrate energy-saving solutions such as advanced cooling technologies and adopt industry best practices in temperature management to enhance energy and water usage efficiency. Furthermore, the data centre will utilise products with zero ozone depletion potential or with global warming potential (GWP) of less than 100 to minimise environmental impact.

CapitaLand Investment's global data centre capabilities

The data centre inOsakais a testament to CLI's experience in investing, designing, developing and operating data centres. Combined with CLI's deep market knowledge, deal-sourcing expertise, and global investment network, CLI's vertically-integrated data centre capabilities enable it to partner with investors to tap into the wealth of opportunities in the sector.

CLI's ability to deliver world-class data centre solutions was clearly demonstrated recently when CapitaLand India Trust (CLINT)signed a long-term agreement with a leading global hyperscalerfor its data centres under development inIndia. With the agreement, CLINT is likely to pre-lease about half of its total gross power capacity of around 250 MW across its four data centres which are under development inIndia. CLINT is developing state-of-the-art facilities in all the key data centre corridors ofIndia, i.e., Mumbai,Chennai,HyderabadandBangalore.

CLI's localised data centre teams are led by country heads with over 25 years of industry experience each and supported by a global Centre of Excellence for data centre led by MrKenny Khow, Managing Director for Global Data Centre. Kenny, who has over 30 years of experience, joined CLI inSeptember 2024to oversee the development and execution of CLI's strategy for its growing data centre business in close collaboration with CLI's data centre fund and country teams.

CapitaLand Group has data centre investments across nine countries such asSingapore,Japan,South Korea,India,China, theUnited Kingdom,France,the Netherlands, andSwitzerland.

About CapitaLand Investment Limited (www.capitalandinvest.com) 

Headquartered and listed inSingapore, CapitaLand Investment Limited (CLI) is a leading global real asset manager with a strongAsiafoothold. As at 30 September 2024, CLI hadS$134 billionof assets under management, as well asS$102 billionof funds under management held via six listed real estate investment trusts and business trusts and a suite of private real asset vehicles that invest in thematic and tactical strategies. Its diversified real estate asset classes include retail, office, lodging, industrial, logistics, business parks, wellness, self-storage, data centres, private credit and special opportunities.

CLI aims to scale its fund management, lodging management and commercial management businesses globally and maintain effective capital management. As the investment management arm of CapitaLand Group, CLI has access to the development capabilities of and pipeline investment opportunities from CapitaLand's development arm.

As a responsible company, CLI places sustainability at the core of what it does and has committed to achieve Net Zero carbon emissions for Scope 1 and 2 by 2050. CLI contributes to the environmental and social well-being of the communities where it operates, as it delivers long-term economic value to its stakeholders.

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Issued by: CapitaLand Investment Limited (Co.  Regn.:200308451M)

Important Notice

This announcement and the information contained herein does not constitute and is not intended to constitute an offering of any investment product to, or solicitation of, investors in any jurisdiction where such offering or solicitation would not be permitted.

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SOURCE CapitaLand Investment Limited