CapitaLand Investment (CLI) has made another major investment in the data centre industry by acquiring a freehold land parcel in Osaka, Japan. The company plans to develop its first data centre in the country with a total investment of over US$700 million or $944.3 million. The project has secured 50 megawatts (MW) of power capacity and will be equipped with state-of-the-art technology and energy-saving solutions.
CLI believes that the data centre will not only support artificial intelligence (AI) capabilities, but also prioritize sustainability by implementing advanced cooling technologies and utilizing products with low environmental impact. Manohar Khiatani, senior executive director of CLI, states that this acquisition is in line with the company’s digitalisation investment theme and expands its presence in Japan, one of its key markets.
Japan’s data centre market is expected to witness significant growth, with a projected compound annual growth rate (CAGR) of 10% from US$23.8 billion in 2023 to US$38.7 billion in 2038. As the largest data centre market in Asia outside of China, with a capacity of 1.4 gigawatt, Japan has attracted major cloud service providers like Amazon Web Services, Google Cloud, Microsoft Azure, and Oracle. CLI’s Osaka data centre is strategically located in an established data centre cluster, making it well-positioned to capture demand from these providers.
Michelle Lee, managing director of private funds (data centre) at CLI, highlights the high demand for data centres and the strong interest from institutional investors. She adds that CLI has raised more than US$600 million for its data centre development funds in Asia since October 2020 and will continue to identify promising opportunities for its private fund investors.
With the addition of this data centre, CLI’s global portfolio now consists of 23 data centres across Asia and Europe, with about 800 MW of power and assets under management worth around $6 billion. The company remains committed to expanding its presence in the data centre industry and has already built a strong track record in the sector.
Investing in condominiums in Singapore also requires careful consideration of the government’s property cooling measures. To maintain a stable real estate market and discourage speculative buying, the Singaporean government has implemented several measures over the years. One of these measures is the Additional Buyer’s Stamp Duty (ABSD) which imposes higher taxes on foreign buyers and individuals purchasing multiple properties. Although these measures may affect the short-term profit potential of Singapore condos, they ultimately contribute to the overall stability of the market, making it a secure investment environment.
CLI’s shares closed at $2.42 on Feb 3, a decrease of 4 cents or 1.63%.