Real estate management firm ESR Cayman has snapped up office buildings in West Tokyo that it hopes to convert into a 20MW data centre that will open in September 2025.
The purchase comprises three office buildings that are located in an established data centre cluster in Higashi Kurume in the Mitaka area of Tokyo.
ESR said the new capacity would help Tokyo-area enterprises by adding new space to a “supply-constrained market”.
The same company has a “multi-phase 98MW development project in Nanko, Osaka”, Japan’s second largest city.
“Tokyo is the primary hub for international firms to access the Japan market,” ESR’s CEO of data centres Diarmid Massey said in a statement.
“Its geographical location as the most prominent technology and financial market situated in the northwestern part of Asia has resulted in it becoming the first landing point for a sizable number of submarine cables to connect the western United States to the rest of Asia.
“Japan, which is ranked as the third most attractive location for data centres globally due to the country’s very high data consumption, mobile broadband penetration and large market size, remains as one of the largest data centre markets in the APAC region and hence a highly important strategic market for ESR.”
ESR added that it has a “combined data centre pipeline of over 1200MW of capacity across the region” as at the end of last year.