Share: Share with Email

Data Center Marketbeat Report

Todd Olson • 12/10/2021

MARKET OVERVIEW

Tokyo continues to attract new investment, beginning with the entry of Princeton Digital Group and Vantage with their initial projects locally, bringing the under-construction total in-market to 130 MW, mainly aimed at hyperscale tenants marketing their platforms to large corporations and government entities. While hardly a lowcost market for land acquisition, land (and associated zoning and permitting) is available for major builds, a considerable advantage in comparison to rapidly constrained markets regionally and globally. As noted in our last report, investment in operational facilities has continued with three buildings trading, two leased to Arteria and acquired by recent entrant Digital Edge, and a third sold by IIF REIT with tenants NTT Docomo and Hitachi. With the continued upgrades in connectivity and further cloud services options, expect impressive performance leading into 2022 and more development and investment coming in Tokyo and regionally.

ECOSYSTEM DEVELOPMENTS

  • Amazon has agreed to purchase 22 MW of solar energy from Mitsubishi subsidiary MC Retail Energy, as the cloud computing giant continues its global push toward fully renewable energy. The deal is the first renewable energy acquisition in Japan for Amazon. 
  • Tencent added another location in Tokyo, bolstering their local Northeast Asia Pacific region. The major cloud service continues expansion across the world, with new sites in Bangkok, Frankfurt, and Hong Kong also coming online.
  • The Softbank-owned BBIX internet exchange now offers access to IBM Cloud, adding to previous availability with Amazon Web Services, Microsoft Azure, Google Cloud, and several other major platforms. The exchange followed this with further access available at the Softbank Tokyo Number 4 data centre.
  • Zenlayer added a new bare metal cloud zone in Tokyo at mid-year, joining Atlanta, Istanbul, and Guangzhou as cities gaining additional capacity. Two additional cloud networking links also came online locally, connecting Tokyo to both Seattle and Hong Kong. 
  • The Pan-Asia acquisition of Agile Data Centers by Vantage provides instant access to major markets Tokyo, Osaka, and Melbourne, with a large project currently underway in Sagamihara. Vantage is now active in fifteen markets globally spanning North America, Europe, and Asia. 
  • Tata Consultancy Services and Google Cloud are partnering to establish TCS Google Garages in three global cities, with Tokyo joining New York and Amsterdam acting as locations for co-innovation and research. Cloud solutions, artificial intelligence (AI), and much else will be on offer for companies to evaluate. 
  • @Tokyo announced further service offerings locally, first collaborating with PCCW on for further connectivity via the Console Connect platform to link to further markets across the greater Asia-Pacific region. This was followed by the addition of Megaport availability within the @Tokyo Cloud Lab for further Network-as-a-Service (NaaS) options. 

 

INZAI MARKET CLUSTER

 

While other primary data center markets across the world have suffered from a lack of available power, the Inzai cluster located 40 kilometres outside of central Tokyo looks set to thrive thanks to continued support from utility TEPCO and robust transmission lines across the area. The Mitsubishi-Digital Realty joint venture recently completed a new building in Inzai, joining Colt and new construction by the Equinix-GIC xScale joint venture and AirTrunk on their initial foray into Japan. Despite other builds announced in Saitama and Sagamihara, expect Inzai to continue its prominence as hyperscalers continue to battle for market share locally, thanks to the strong connectivity and power available. 

Source: TEPCO, Real Capital Analytics

Data center marketbeat report 2021

Data center marketbeat report 2021

MARKETBEATS

Manhattan Office MarketBeat
MarketBeat • Office

Manhattan Office Marketbeat Report

 
Richard Persichetti • 27/08/2021
Office Buildings CBD
MarketBeat • Insights

Office Marketbeat Report

 
Hideaki Suzuki • 18/08/2021
Warehouse Internal Rack
MarketBeat • Insights

Logistics Marketbeat Report

Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.
Hiroshi Tsuruoka • 15/07/2021
APAC Marketbeat
MarketBeat • Insights

Japan MarketBeat

Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.
Hideaki Suzuki • 15/07/2021
KEI
MarketBeat • Insights

Key Economic Indicators report

Hideaki Suzuki • 25/08/2020
Shopping Retail
MarketBeat • Insights

Retail Marketbeat Report

 
Isao Suga • 14/10/2021
Warehouse Internal Rack
MarketBeat • Insights

Investment Marketbeat Report

Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.
Yoshiyuki Tanaka • 25/09/2020