Telehouse has acquired three data centers in Canada, marking its entry into the country.

The data center firm’s parent company KDDI this week announced it had acquired three data centers and the accompanying assets in Toronto, Canada from Allied Properties REIT.

Telehouse Toronto 151 front.jpg
– Telehouse | KDDI Corp

KDDI paid CA$1.35 billion (US$1.02bn) for the portfolio, and will be establishing a new local entity, KDDI Canada, Inc.

The Allied data center portfolio comprises freehold interests in 151 Front Street West and 905 King Street West, and a leasehold interest in 250 Front Street West. It does not include 20 York Street, the site for Union Centre.

KDDI said at full build-out, the facilities will offer 30MW of IT load.

Yasuaki Kuwahara, senior managing executive officer and head of business solutions at KDDI, said: “This is another milestone achievement for KDDI, and an exciting investment which will enhance connectivity capabilities for Canadian businesses.”

In November 2022, Allied said it was exploring a potential sale of its data center portfolio. The company confirmed in January it was actively looking for a buyer for its urban data center (UDC) portfolio.

Michael Emory, founder and executive chair of Allied Properties REIT, said: “With global data center operating capability, KDDI is an ideal successor owner for our data center assets. Canadian cities continue to grow dramatically and successfully. The growth is driven in large part by knowledge-based organizations that require sophisticated and wide-ranging connectivity solutions. KDDI is extremely well positioned to provide these solutions and, in doing so, contribute meaningfully to the many and varied businesses operating in our cities.”

Allied bought 151 Front St. West for $192 million in 2009; Digital Realty, Equinix, and Cologix have a presence there. In 2011, Allied converted 905 King St. West into a data center (also occupied by Cologix). It also operates the 250 Front Street carrier hotel.

151 Front Street previously changed hands in January 2004, when an investment group led by Northam Realty Advisors purchased the building from Trizec Properties for $59 million. The site was built in 1954 to house telegraph equipment and operated as a mixed-use facility until it was bought by Trizec in 1997 and redeveloped for modern telecom use.

Established in 1988 and owned by Japanese telco KDDI, Telehouse has operations in 15 cities globally, including in the US, UK, France, Germany, China, Singapore, Vietnam, Thailand, Kong Kong, and Japan. This latest deal takes the company to 12 countries.

Telehouse entered North America in 1989 with the launch of a data center in New York. Today it operates at 85 10th Avenue in New York City, offering 60,000 sq ft; and at the 162,000 sq ft New York Teleport in Staten Island. It also operates a data center in Los Angeles, California at 626 Wiltshire Blvd.

2023 has seen Telehouse launch a data center in Bangkok, Thailand, and KDDI acquire a stake in Japanese operator IIJ.