U.S. investment firm Asia Pacific Land (APL) is set to allocate 125 billion yen (US $854 million) for the construction of a data center in Kitakyushu, southern Japan. This venture would represent APL’s first foray into the data center domain, having previously invested in commercial and renewable energy-related infrastructure.
Construction of the new data center is scheduled to commence within a four-year time frame. This is according to a proposal presented by APL to the Kitakyushu city council that outlines the city’s intention to sell municipal land for building the data center.
This move aligns with the city’s ambitions to establish itself as a viable alternative hub to Tokyo by alluring corporate headquarters and government agencies to this “secondary capital.”
The facility is projected to consume 120 megawatts of electricity. It’ll mark the city’s second data center, following a site that opened in 2007.
APL’s choice of Kitakyushu, on the northern tip of Kyushu island, was influenced by its proximity to undersea communication cable landings. The proposed site is also situated within a cluster of academic research facilities.
The designated price for the land of about 63,000 square meters, is set at over 2 billion yen (US$ 13.7 million). If the city council approves the sale, the contract signing is to transpire in September.
Earlier this year, Japan’s Ministry of Economy, Trade, and Industry proposed a subsidy to support the establishment of data centers in Hokkaido and Kyushu, to encourage the decentralization of data centers and recognize the sites for their abundant renewable energy sources.
Overall, the Japan data center market is projected to experience steady growth at a CAGR of 5.93% during the 2022-2028 period.