ESR to build US$2bn data centre campus in Osaka, Japan

ESR to build US$2bn data centre campus in Osaka, Japan

APAC focused logistics real estate platform ESR Cayman said Thursday it has acquired a data centre asset in Osaka, Japan.

The asset comprises an existing data centre and excess land, totalling a development potential of up to 78MW IT load.

ESR said it is expected to have a potential GAV of US$2.15 billion, depending on the ratio of operating model between powered shell and fully fitted configurations for each building.

ESR will use the land to build two additional buildings, with a combined IT load of 39MW as power will be available within 12 months. Construction of the first data centre is expected to commence later in 2021, with target completion scheduled in 2023.

The existing data centre is expected to be redeveloped into an additional 39MW IT load upon expiry of the current lease.

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”The three buildings together will form a significant data centre campus in the rapidly growing Osaka market, offering customers the opportunity to lease data halls, individual buildings or multiple buildings – providing scalability and flexibility, ideal for both hyperscalers and colocation operators,”said ESR in a statement.

“As a leading provider of new economy infrastructure, it’s a natural move for ESR to expand into the evolving ecosystem of data centres. We are tremendously excited to launch our first data centre new development, creating a campus-style asset with expansion capability in a prime location of a high growth market. This acquisition adds to ESR’s data centre strategic push which now includes exclusivity on land and power approvals to potentially develop over 200MW across major markets in APAC,” said Jeffrey Shen and Stuart Gibson, ESR Co-founders and Co-CEOs.

The data centre campus is strategically located in Osaka City, within 10 km of the Osaka CBD where Japan’s major Internet Exchange and other network exchanges attract a large number of cloud onramps, telecom companies, leading IT-dependent enterprises and an increasing number of hyperscalers.