Publishing Date: May 29, 2024

Datacentres for better security

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Real estate private equity firm Gaw Capital Partners announced today that the firm, through a fund under its management, has acquired a property (the “Property”) located in Fuchu Intelligent Park,Fuchu City, Japan. This strategic investment further strengthens the firm’s presence in the well-established data centre cluster within 30km from central Tokyo, which is also home to five high-end internet exchange hubs.

The Property is situated near Meito Sangyo Building and Fuchu Building in Fuchu Intelligent Park, both of which were acquired in 2021 and 2022 respectively by funds under Gaw Capital’s management and are currently undergoingredevelopment into carrier-neutral Tier III data centres as Phase I and II. The new property will be demolished and redeveloped into Phase III of the data centres to capture the expanding demand in the market.

Spanning a land size of 11,233 sqm, the Property’s addition will double the scale of the data centres, resulting in a total land size of 22,202 sqm. Subject to final design, the IT capacity of the data centres is projected to increase from 40 IT MW to 78 IT MW (equivalent to 7,800 racks), which will make it the largest data centre facility in Fuchu City in terms of IT capacity. Moreover, beyond the construction economies of scale it brings, the acquisition of the Property is expected to deliver significant strategic value to both the data centres and Gaw Capital’s Pan-Asia IDC Platform.

Isabella Lo, Managing Director, Principal – Investments and Head of Japan at Gaw Capital Partners, said, “We are excited to expand our data centre portfolio with the acquisition of this new property. The completion of the transaction allows us to double the scale of our data centres in Fuchu City, positioning us as the largest data centre facility in Fuchu City in terms of IT capacity. Technological advancements in Japan, especially the ever-growing development of artificial intelligence (AI), which requires exponential computing power, will continue to drive demand for data centres. The strategic location along with enhanced capabilities of our expanded data centre footprint will enable us to deliver exceptional services to our clients across the region.

Kok Chye Ong, Managing Director – Head of IDC Platform, Asia (Ex-China) of Gaw Capital Partners, added, “This acquisition reinforces the strategic positioning of our Pan-Asia IDC Platform. Japan has a sizable internet economy that is expected to continue growing across all key segments and our data centres attract strong interest from potential operators and hyperscale tenants. We remain optimistic towards the Japanese real estate market and believe our expanded data centre capabilities will enable us to meet the evolving needs of businesses seeking reliable and scalable infrastructure solutions in the country.

With over 3,000 MW of total IT load under development, Japan is among the most developed data centre markets in APAC. Despite large volumes of supply coming online in recent years, the Japan internet data centre (IDC) market continues to demonstrate strong demand signals, as evidenced by a combined occupancy rate of 91% for Tokyo and Osaka in 2023, based on the Built Out IT capacity which increased from 940 MW in 2020 to 1,202 MW in 2023 with a CAGR of 8.6%.

Gaw Capital Partners remains committed to identifying and capitalizing on opportunities in the data centre sector, leveraging our expertise and network to drive long-term value for our investors.


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