APPD Market Report Article
TokyoFebruary 28, 2023
Takeshi Akagi, Head of Research, Japan
Strong demand on the back of a growth in cloud services
- Alibaba Cloud established its third data centre within Greater Tokyo in 2H22.
- Google’s first data centre in Japan is scheduled to be established in Inzai in 2023.
Multiple hyperscale projects added to supply pipeline
- Located within a 10km radius of Tokyo station, the DPDC Shinagawa Konan site is due for completion in 2024.
- In Greater Tokyo, NRT12 will offer 36MW in Inzai upon completion in 2024, while AirTrunk TOK2 will offer 110MW in the west of Greater Tokyo.
Polarisation in PUEs observed
- According to a JLL’s data centre survey in 2H22, the representation of those who calculated power usage effectiveness (PUE) was 23%, of which 78% achieved a figure of 1.4 or less.
- The availability of finances for a data centre expansion has increased, due to sluggish growth for other asset classes.
Outlook: DC asset availability to constrain investment deals
- In spite of strong interest towards the sector, investment volume might be constrained over the next six months due to a lack of assets offered to the market.
- Healthy activity related to land acquisitions and development projects are expected to continue for the foreseeable future.