MC Digital Realty - a joint venture between Mitsubishi corporation and Digital Realty - has announced plans for a hyperscale data center in Tokyo.

The five-acre plot of land is located in the Inzai data center cluster, and is expected to deliver up to 35.6MW of total power capacity.

Digital Realty, Osaka, Japan
Digital Realty's data center in Osaka, Japan – Digital Realty Trust

Japanese joint venture

When the project is finished, it will become MC’s second data center in Tokyo and sixth facility nationwide.

Mitsubishi and Digital Realty joined forces in 2017 to focus on operating data centers in Japan.

The 50-50 joint venture started with an initial capital of more than 400 million yen ($351m), and aims to manage over 200 billion yen ($1.8 billion) worth of assets by 2022.

Demolition of the existing structure on the site will begin immediately after the deal is closed later this year. Construction of the data center is expected to commence in 2020, subject to planning permission approval.

Digital Realty CEO A. William Stein said: "We are pleased to be procuring land through MC Digital Realty to power our customers' digital ambitions in Japan, with state-of-the-art future capacity in Tokyo, a longtime target market and one of the top financial and technology hubs in the Asia Pacific region.

"Public cloud growth, surging demand for data center solutions and a mature technology infrastructure market make Japan a highly attractive market poised for rapid growth over the next several years."

Japan is the world’s third largest national economy, after the US and China. Due to its geography, the archipelago has long served a major submarine cable interconnection point between Asia and North America.

In the last year alone there have been three submarine cables built, connecting Japan toGuam, Australia, Singapore, South Korea and China.