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Japan Data Center Council members predicted that despite the devastation following the March earthquake and Tsunami, Japan’s data center industry could end up being stronger before.
And now a new investment fund focused exactly on data centers in the country could be a sign they are right.
Diamond Realty Management, an investment fund owned by Mitsubishi Corporation which holds capital of 300m yen, said it has set up private real estate fund worth 25.8bn yen which will focus solely on data centers.
Major domestic institutional investors and pension funds will contribute to funding, with a single major domestic bank promising a non-recourse loan based on the strength of the data center market and the stable cash flow coming in from data center facilities.
Diamond Realty Management, which was set up in 2004 and has since invested in six real estate funds for domestic and global investors, said it has already put money into three data centers in Japan, two in the Greater Tokyo Metropolitan area and one in Sapporo, Hokkaido.
According to Diamond Realty Management, these cater to some of Japan’s biggest telecommunications companies. A report by Bloomberg said they are home to some of the data center operations or Softbank, which provides Apple’s iPhone in Japan.
"Japan’s real estate investment market has started to show signs of recovery after the financial crisis and earthquake," Diamond Realty Management said on its website.
Following the earthquake a number of companies rushed to ensure disaster recovery and provision of services could be assured if a similar incident were to occur. This has increased demand for cloud computing and in turn data centers and network connectivity across the region.