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Data Center Marketbeat Report

Todd Olson • 05/04/2021

MARKET OVERVIEW

As noted in the last edition of this report, Tokyo is rapidly growing into a hyperscale hub throughout East Asia. As Colt and Equinix each completed construction on new campuses late in 2020, Equinix immediately began work on their second phase thanks to strong leasing and advance commitments from local clientele. Many clients both local and international are looking to the expanding neighborhood in Inzai to serve as their national or regional entry point, with secondary deployments following thereafter in Osaka. The investment market also enjoyed a rare large transaction at the end of the year, with AXA Investment Managers acquiring a SoftBank data centre for ¥22 billion. This strong pricing indicates the desire for operational assets in Tokyo with top level tenancy, and could drive further investment in the coming year as large funds form data centre investment strategies. With the established REITs adding new connectivity options and the upcoming AirTrunk campus launching its first phase before year-end, Tokyo continued to move from strength to strength over the past several months and looks set for continued growth over the next year.

ECOSYSTEM DEVELOPMENTS

  • Mitsubishi Corporation and Digital Realty recently signed an agreement with ARTERIA Networks that provides for increased connectivity at the upcoming NRT10 campus. ARTERIA is upgrading their fibre network across Inzai, with a dedicated connection at NRT10 linking to regional cable landing stations. The first phase of NRT10 is planned to go live in August.

  • Equinix announced that their Network Edge product will be coming to Tokyo in 2021 alongside three other international locations. Network Edge allows for virtual network services for quick deployment and scalability, with no further hardware needed. Equinix also announced the expansion of Equinix Metal in Tokyo and seven other cities, offering additional Infrastructure-as-a-Service (IaaS) options. The global REIT and partner GIC Real Estate are additionally constructing another phase at TY12x, coming online early in 2022.

  • Amazon Web Services (AWS) rolled out AWS Direct Connect 100Gbps, explicitly targeting those users in need of higher bandwidth for large-scale data sets. Tokyo is one of the first markets to launch this service, available at @Tokyo CC1 and Equinix TY2, TY6, TY7, and TY8.
 

 

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