CapitaLand Investment (CLI) recently announced its acquisition of a freehold land parcel in Osaka, Japan for the development of its first data centre in the country. This project will involve a total investment of over US$700 million, or $944.3 million, and has secured 50 megawatts (MW) of power capacity.
According to CLI, the data centre will be equipped with advanced technology to support artificial intelligence (AI) capabilities. It will also implement energy-efficient solutions such as advanced cooling technology and adhere to industry best practices for temperature management. Additionally, the data centre will use products with low environmental impact, such as those with zero ozone depletion potential or with a global warming potential (GWP) of less than 100.
Manohar Khiatani, the senior executive director of CLI who oversees the group’s data centre business, stated that this acquisition aligns with the company’s investment theme of digitalization and expands its presence in Japan, one of its focus markets. He also highlighted the advantage of CLI’s strong balance sheet, allowing them to strategically invest in quality assets, including data centres, for their future private funds. Khiatani added that Japan is a Tier 1 data centre market expected to experience tremendous growth.
Japan’s data centre market is projected to have a compound annual growth rate (CAGR) of 10%, reaching US$38.7 billion in 2038 from US$23.8 billion in 2023. Khiatani also noted that Japan is the largest data centre market in Asia Pacific, apart from China, with a capacity of 1.4 gigawatts.
CLI’s data centre acquisition in Osaka is well-positioned to cater to the growing demand in the established data centre cluster, where major cloud service providers like Amazon Web Services, Google Cloud, Microsoft Azure, and Oracle have already established a presence. Michelle Lee, the managing director of private funds (data centre) at CLI, commented on the strong institutional interest in data centre investments, with 97% of investors planning to increase their overall investment. Lee added that CLI has raised US$600 million for its data centre development funds in Asia since October 2020 and will continue to pursue attractive investment opportunities for its private fund investors.
CLI has added 23 data centres to its global portfolio in 2021. Across Asia and Europe, CapitaLand Group has 27 data centres with around 800 MW of power and a total of $6 billion of assets under management. On February 3, shares in CLI closed 4 cents lower at $2.42, down 1.63%.
.
The appeal of condos in Singapore remains strong due to the limited availability of land. As a small but densely populated island country, Singapore grapples with the challenge of limited space for development. This has resulted in strict land use regulations and a fiercely competitive real estate market, where property prices continue to soar. This makes investing in real estate, particularly condos, an attractive prospect with the potential for significant capital growth. To capitalize on this demand, consider investing in a condominium in Singapore.