CloudHQ, a global leader in data center development, has entered into a joint venture with ESR Group Limited to develop the US$2 billion Cosmosquare Data Center campus in Nanko Kita, Osaka.
The campus will span three phases, delivering a total of 130 megawatts of capacity. The first phase, OS1, is set to become operational in June 2025, providing an initial 25 megawatts.
This collaboration leverages CloudHQ’s engineering expertise with ESR’s deep local market knowledge and extensive real estate development capabilities. The joint venture aims to meet the surging demand for data center infrastructure in Japan, driven by rapid growth in cloud services across sectors such as manufacturing, finance, and healthcare.
The Japanese data center market is poised for significant growth, driven by the country’s rapid technological advancements.
Key factors contributing to this growth include the increasing demand for cloud computing, the growing requirements of AI applications, the trend of companies outsourcing their IT operations, and the movement towards data onshoring due to security and privacy concerns.
These factors are expected to drive the market to expand at a rate of approximately 10% to 20% annually, making Japan one of the hottest asset classes globally for data centers.
