Goldman Sachs Group Inc., an American multinational investment bank and financial services company, reportedly intends to raise US$ 500 million for a new Japan-focused real estate fund to pursue a value-add investment strategy, targeting data centers, logistics facilities, residential properties, and hospitality assets.
As per a Bloomberg report, the New York-based bank has been marketing the fund to investors in recent months, aiming to capitalize on a rebound in Japan’s real estate market driven by comparatively low borrowing costs and a weak yen.
It is noteworthy that data centers figure into Goldman Sach’s wider investment plans for Japan, given how the country has been attracting a steady stream of billion dollar investments into digital infrastructure from top global hyperscalers over the past two years.
According to Mordor Intelligence, the Japan data center market was valued at US$ 10.99 billion in 2025, and is forecast to expand to US$ 16.40 billion by 2030, registering a CAGR of 8.34 percent over the 2025–2030 period. From an IT load capacity perspective, total capacity is expected to increase from 3.34 GW in 2025 to 6.46 GW by 2030, reflecting a higher CAGR of 14.12 percent during the same timeframe.
Goldman Sachs expects to close for the first fund in late March 2026. While the firm has previously invested in Japanese real estate, those investments have largely been made through its own balance sheet rather than through a dedicated external fund.
The economic climate in Japan appears to be ripe for business expansion and growth. Readers would recall that just last month, in December 2025, the Bank of Japan lifted its key interest rate by 25 basis points to o.75 percent, the highest level in three decades, purportedly to achieve sustainable price stability and combat inflation. The depreciation of the yen has enhanced the purchasing power of dollar-based investors which has made Japan emerged as an attractive location for global real estate investors. Since foreign investors have been drawn to Japan because financing costs remain low compared to other developed markets.
Recent large-scale transactions highlight the renewed momentum. KKR & Co. and PAG agreed last month to acquire part of Sapporo Holdings Ltd.’s real estate business for ¥477 billion (US$ 3 billion), one of the country’s largest property deals in 2025. In December, Blackstone Inc. announced a ¥100 billion (US$ 630 million) acquisition of a logistics facility in Tokyo.
Japan’s real estate investment volume rose 22 percent year on year to ¥4.71 trillion (US$ 30 billion) in the first three quarters of 2025, according to Jones Lang LaSalle Inc. (JLL) report, outpacing the 21 percent global growth over the same period.
And that’s just the wider real estate market. If we look at the digital infrastructure investments in 2024-2025, major players like AWS, Microsoft, Softbank and OpenAI have all announced billions of dollars worth of investments, into hyperscale developments and AI infrastructure.
