APPD Market Report Article
TokyoAugust 25, 2022
Christopher Street, Head of Data Centres, Asia Pacific
Increase in cloud migration drives demand growth
- The cloud adoption rate by enterprises has continued to accelerate, leading to a growth in hyperscale operations in order to meet demand.
- The government’s digital initiative has also driven up the demand for cloud services.
New supply strategies play out
- As cloud players have been increasing their commitments in the region, operators are increasing their hyperscale capacity.
- The Japanese real estate developer, Hulic, will be entering the market by converting its existing office building into a new data centre facility in Central Tokyo’s Nihonbashi area, heralding a data centre growth trend. It is due for completion in 2025.
Hyperscale expansions continue in Tokyo region
- The private equity firm, Gaw Capital Partners, acquired a building located in Fuchu Intelligent Park, which will be demolished and redeveloped into Phase II of a Tier III data centre. It is expected to have a critical load capacity of 39 MW.
- AirTrunk is planning to build TOK2, a new hyperscale data centre in Japan, which will strengthen the company’s presence in the country. The upcoming facility is to be the company’s eighth data centre and will have a capacity of over 110 MW.
Outlook: Rising cloud adoption to drive hyperscaler expansion
- Rents might see revisions due to the rise in input costs.
- In addition, supply delivery is likely to get postponed. There is a shortage of skilled resources for DC construction expected in light of surging construction demand.