Australia’s real estate group Lendlease plans to invest A$800 million (US$600 million) to build its first data centre in Japan.
Located in Greater Tokyo, the facility is sited on approximately 323,000 sq ft of land and will operate under Lendlease Data Centre Partners (LLDCP), the ASX-listed company said.
LLDCP is 80 per cent owned by a global institutional investor and the remaining 20 per cent by Lendlease. The fund’s mandate covers Australia, China, Japan, Malaysia and Singapore, and includes both completed assets and new development opportunities. As per the partnership, Lendlease undertakes development, construction, property and investment management.
Andrew Gauci, managing director of Japan and head of telecoms and data infrastructure Asia, Lendlease, said: “The demand for data centres in the Asia Pacific is set to grow exponentially, with internet-related services usage soaring due to the pandemic. We are excited to launch our first data centre development under Lendlease Data Centre Partners.
“This project is of significant scale in a sector of growing importance in the digital economy, leveraging our more than 20 years’ experience in the local communications and data infrastructure space, as well as Lendlease’s broader presence in Japan for over 30 years.”
Further, the phased development is planned to deliver more than 645,000 sq ft of gross floor area, in which close to half of the site has been pre-leased.
According to Structure Research, Tokyo is one of the world’s five largest data centre metro clusters, with a quarter of the worldwide marketshare.
Lendlease’s chief executive for Asia, Justin Gabbani, said: “This partnership is an exemplar of our updated strategy in action, leveraging our competitive edge and creating value with our partners. With our end-to-end integrated capabilities, we look forward to building on this to explore further investments in the future.”
Lendlease said that the construction will begin later this year with the initial phase to be completed by early 2024.