ESR and CloudHQ have announced a joint venture to construct and operate a significant data centre campus in Osaka, Japan, with an investment of US$2 billion. This ambitious project aims to meet the growing demand for cloud services across various sectors, including manufacturing, automotive, financial services, healthcare, and government.
Key Takeaways
- Joint Venture: ESR and CloudHQ collaborate to build a data centre campus in Osaka.
- Investment: The project involves a US$2 billion investment.
- Capacity: The campus will deliver 130 MW of data centre capacity in three phases.
- First Phase: OS1, the first facility, is set to be operational by June, providing 25 MW of capacity.
- Market Demand: The initiative responds to increasing demand for cloud services in Japan.
Overview of the Joint Venture
The partnership between ESR, a leading logistics real estate platform, and CloudHQ, a data centre operator, is poised to reshape the data infrastructure landscape in Japan. The joint venture will focus on the development, fit-out, and operation of the Cosmosquare Data Centre campus, which is expected to be a cornerstone for cloud services in the region.
Phased Development Plan
The data centre campus will be developed in three distinct phases:
- OS1: The first facility, scheduled to be operational by June, will provide 25 MW of capacity.
- OS2: Details regarding the second phase are yet to be announced, but it will contribute to the overall capacity.
- OS3: The final phase will complete the 130 MW capacity goal.
Strategic Importance
This joint venture is strategically significant for both companies. ESR’s extensive local real estate knowledge combined with CloudHQ’s engineering expertise positions them to effectively meet the needs of clients in Japan and the broader Asia-Pacific region.
Hossein Fateh, founder and CEO of CloudHQ, emphasized the potential of this partnership, stating, "This joint venture will enable us to better serve our clients in Japan and across the Asia-Pacific region, ensuring they have access to the highest quality data centre infrastructure and services."
Market Context
Japan’s demand for cloud services is surging, driven by various sectors that are increasingly reliant on digital infrastructure. The manufacturing, automotive, financial services, healthcare, and government sectors are particularly notable for their growing needs. ESR is well-positioned to capitalize on this trend, having already announced other data centre developments in Keihana, Minoh City, and Ariake, Tokyo.
Conclusion
The collaboration between ESR and CloudHQ marks a significant step forward in enhancing Japan’s data centre capabilities. As the demand for cloud services continues to rise, this joint venture is set to play a crucial role in providing the necessary infrastructure to support various industries in the region. With the first phase of the project nearing completion, stakeholders are optimistic about the future of data services in Japan.
Sources
- ESR, CloudHQ forge JV to build data centre campus in Japan | Singapore Business Review, Singapore Business Review.
