Gaw Capital Partners expands data center portfolio with acquisition of Fuchu Intelligent Park in Japan

The property is located adjacent to the Meito Sangyo Building and the Fuchu Building at Fuchu Intelligent Park, which were acquired in 2021 and 2022, respectively, by funds managed by Gaw Capital and are currently undergoing redevelopment into telecom-neutral Tier III data centers as Phase I and II.

TOKYO, JAPAN, Media OutReach Newswire, May 27, 2024: Real estate private equity firm Gaw Capital Partners announced today that the company has acquired real estate through a fund it manages (“Property“) located in Fuchu Intelligent Park, Fuchu City, Japan. This strategic investment further strengthens the company’s presence in a well-established data center cluster located 30 km from central Tokyo, which is also home to five high-end Internet data exchange hubs.

The property is located adjacent to the Meito Sangyo Building and the Fuchu Building at Fuchu Intelligent Park, which were acquired in 2021 and 2022, respectively, by funds managed by Gaw Capital and are currently undergoing redevelopment into telecom-neutral Tier III data centers as Phase I and II. The new facility will be demolished and redeveloped into Phase III data centers to meet growing market demand.

The expansion of the facility will cover an area of ​​11,233 m2 and will double the scale of the data centers, bringing the total area to 22,202 m2. Subject to final design, the IT capacity of the data centers is expected to increase from 40 IT MW to 78 IT MW (equivalent to 7,800 racks), making them the largest data center facility in Fuchu City in terms of IT capacity. Moreover, in addition to the economies of scale resulting from construction, the acquisition of the property is expected to provide significant strategic value to both the data centers and Gaw Capital’s Asian IDC platform.

Isabella Lo, Managing Director, Chief Investment Officer and Head of Japan at Gaw Capital Partners, said: “We are excited to expand our data center portfolio through the acquisition of this new property. The completion of the transaction allows us to double the scale of our data centers in Fuchu City, positioning us as the largest data center facility in Fuchu City in terms of IT performance. Technological advances in Japan, especially the ever-increasing development of artificial intelligence (AI), which requires exponential computing power, will continue to drive demand for data centers. The strategic location, combined with the greater capabilities of our expanded data center, will enable us to provide exceptional services to our customers throughout the region.

Kok Chye Ong, Managing Director – Head of IDC Platform, Asia (former China) of Gaw Capital Partners, added: “This acquisition strengthens the strategic positioning of our Asian IDC platform. Japan has a massive internet economy that is expected to continue to grow across all key segments, and our data centers are attracting strong interest from potential hyperscale operators and tenants. We remain optimistic about the Japanese real estate market and believe that our expanded data center capabilities will enable us to meet the evolving needs of companies seeking reliable and scalable infrastructure solutions in the country.

With a total IT load of over 3,000 MW, Japan is one of the most developed data center markets in the APAC region. Despite large supply volumes available online in recent years, Japan’s Internet Data Center (IDC) market continues to show strong demand signals, as evidenced by a combined occupancy rate of 91% in Tokyo and Osaka in 2023, based on built-in infrastructure Power IT, which increased from 940 MW in 2020 to 1,202 MW in 2023, at a CAGR of 8.6%.

Gaw Capital Partners remains committed to identifying and pursuing opportunities in the data center sector, leveraging our expertise and network to deliver long-term value for our investors.

Read also: Unveiling ethical imperatives: navigating the intersection of artificial intelligence and cybersecurity

Follow up: CIO News LinkedIn Account | CIO News on Facebook | CIO News Youtube | CIO News on Twitter

About us:

CIO News is the leading platform dedicated to bringing you the latest news, updates and insights from the CIO industry. As a trusted source in the technology and IT sector, we provide a comprehensive source of information for executives and professionals who want to stay up to date and stay ahead of the competition. With a focus on cutting-edge solutions and trends, CIO News is the perfect place to stay up to date with the rapidly evolving technology and IT landscape. Founded in June 2020, CIO News has rapidly evolved and has ambitious growth plans for global expansion, targeting the Middle East and Africa, ASEAN, US and UK markets.

CIO News is owned by Mercadeo Multiventures Pvt Ltd.