Japan Real Estate Developers Boosting Data Center Projects
Tokyo, Sept. 14 (Jiji Press)—Major real estate developers in Japan are stepping up their data center development, as further growth is expected on the back of an artificial intelligence boom.
Major Japanese real estate developers are increasing investments in data center projects, anticipating significant growth driven by the artificial intelligence boom. According to the communications ministry, the data center market in Japan could surpass ¥5 trillion by 2028. Real estate companies are leveraging their expertise in land transactions and redevelopment to facilitate smooth expansion of their data center businesses.
Daiwa House Industry plans to construct 14 data centers in Inzai, Chiba Prefecture, starting with its fifth facility in late September. The company has also developed modular small data centers, manufacturing components in factories and assembling them on-site. Daiwa House aims to handle all aspects of data center operations and management in the future.
Mitsui Fudosan intends to invest over ¥600 billion in data center-related projects by fiscal 2035, with ongoing projects in various locations across Japan. The company adjusted its plans for a Hino data center project after consulting with local authorities, lowering the building height due to concerns about waste heat and its impact on surrounding areas.
Other developers, such as Mitsubishi Estate and Tokyu Land, have also entered the data center market, with some projects powered by renewable energy. The shift in investment focus is attributed to real estate firms recognizing data center operations as an extension of their existing tenant operations, allowing them to contribute to urban development and provide additional amenities like parks.
Written by urgent.news from The Japan News by The Yomiuri Shimbun's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
