Keppel has acquired an under-development data center being constructed in Tokyo, Japan.
Keppel Ltd. this week announced that its private fund, Keppel Data Centre Fund II (KDCF II), has entered into a sale and purchase agreement with Mitsui Fudosan for the forward purchase of Keppel Data Centre Tokyo 2, a data center facility currently being developed by Mitsui Fudosan.
Terms were not shared.
The company said this marks Keppel’s first data center development project in Japan and its second data center asset in the country.
Ground was recently broken on the 300,000 sq ft (approximately 27,871 sqm) facility, with Keppel CEO Loh Chin Hua and Mitsui Fudosan COO Hiroyuki Shinozuka in attendance. The facility is set to be ready for service in 2027.
Mitsui Fudosan will develop the core and shell of the data center, while KDCF II will undertake the fit-out works. Keppel will be the facility manager.
Christina Tan, CEO fund management and chief investment officer of Keppel said: “We are delighted to celebrate the groundbreaking of Keppel DC Tokyo 2 which firmly establishes Keppel’s presence in Japan’s thriving data center market. With the rapid growth of generative AI and cloud services, demand for data centers will continue to surge and we are well-positioned to meet the requirements of our hyperscale customers with another future-ready data center. We look forward to working even closer with Mitsui Fudosan, a leader in real estate development, to further develop a quality pipeline of assets for our upcoming Keppel Data Centre Fund III.”
Keppel and Mitsui Fudosan announced a partnership in March, saying the two companies would ‘jointly explore data center development and investment opportunities’ in Japan and Southeast Asia.
Hiroyuki Shinozuka, COO (Logistics Properties Business Division), Mitsui Fudosan added: “This win-win partnership has enabled Keppel and Mitsui Fudosan to leverage each other’s strengths to develop a high-quality data center asset that will deliver value for all our stakeholders. Together, we are setting new standards for next-generation digital infrastructure assets in Japan and we hope to further strengthen our collaboration with Keppel to explore more growth opportunities.”
Mitsui Fudosan is a major real estate company in Japan. The company was founded in 1941 after Mitsui’s real estate division was spun out.
Keppel acquired an existing data center in Tokyo in July. The freehold multi-story property, named Tokyo Data Centre 1, was completed in 2019 with a net lettable area of 190,165 sq ft (17,665 sqm). It is master leased on a triple-net basis to a Fortune Global 500 company and hyperscaler with seven years remaining on the lease term. Keppel bought the site for JPY 23.4 billion ($144.8m).
Keppel’s data center portfolio currently totals 35 facilities across Europe and Asia Pacific with 650MW of power capacity, with around 220MW of the capacity is in various stages of development. The company recently announced plans to double its total capacity to 1.2GW.
