Oaktree Backs Stack Entry to APAC Data Centre Market with 36MW Japan Facility

US hyperscale specialist Stack Infrastructure has teamed up with global investment firm Oaktree Capital Management to build a 36 megawatt data centre campus in Japan’s Chiba prefecture, marking its first facility in the Asia Pacific region.

Stack, which has locations in 10 cities across North America and Canada, said it has partnered with Oaktree to develop a two-building data centre campus in Inzai, northeast of Tokyo, which is slated for completion by the fourth quarter of 2023 as it targets hyperscale and enterprise clients in the region.

“The decision to enter Japan, a critical location for hyperscale customers, demonstrates Stack’s ability to leverage our partnership model, capital, expertise and ability to attract leading talent in the industry to the Stack platform,” said Pithambar Gona, chief executive for APAC at Stack.

The announcement comes less than three months since Stack launched its operations in Asia and opened its headquarters in Singapore, joining a slew of US players eager to tap Asia’s growing data centre market.

Stack Starts With Japan

With construction commencing next quarter, the two buildings are designed for 18 megawatts of power capacity each and will accommodate high levels of rack density, which will help Stack add to its more than 1,300 megawatts of facilities in operation or under development globally.

The campus named TKY01 will be built on a 2.3 hectare (5.7 acre) site along the Keisei Narita Kuno railway line in Hara, an area at the heart of Inzai City. The city lies in the northern portion of Chiba prefecture, within the Greater Tokyo Area.

Stack said the facility will be connected to regional substations powered by Tokyo Electric Power Company with the project potentially eligible for expansion beyond its 36MW initial capacity.

Launched by IPI Partners in 2019 from the private equity fund manager’s merger of two smaller data centre providers, Stack says it has formed a local team in Japan to oversee its operations in the country.

“We are excited to partner with Stack to accelerate their international expansion in this critical region,” said Hideya Takahashi, senior vice president of Oaktree. “Stack’s industry-leading innovative technical solutions paired with Oaktree’s experience in providing ideal locations and infrastructure in the region, will result in a 36 megawatt campus that is looking to exceed the highest level of expectations from clients.”

Mingtiandi understands that the commitment from Oaktree is a real estate investment and was not sourced from the company’s opportunity funds.

Stack did not respond to follow-up queries by the time of publication while Oaktree declined to comment further.

US Players Battle for APAC Territory

After kicking off its APAC platform in Tokyo, Colorado-based Stack is also planning to establish data centres in Singapore, Hong Kong, South Korea, Australia and other key markets in the region, while it continues to widen its footprint in the US. Just last week, Stack announced that it is developing a 216 megawatt campus in Ashburn, Virginia with the first phase scheduled for completion in the third quarter of next year.

Other projects in the pipeline for Stack include a 56-megawatt data centre in Toronto, Canada set to open its first phase this year, with projects also underway in Portland, Oregon; Prince William County, Virginia; Alliance, Texas; and Avondale, Arizona.

As Stack expands in Asia Pacific it will meet a number of familiar faces from back home in the US, as North American digital infrastructure players crowd into the market. Late last year, EQT-backed EdgeConneX bought a stake in Hong Kong-based developer Chayora as it expands its platform in the region, and this week the US firm said it has hired former LendLease data centre boss Sam Lee as its managing director for market and commercial development in Asia Pacific.

Another American hyperscale provider, Digital Realty, is expanding its presence in the region, including spending $66 million in July last year to acquire a site in Seoul, South Korea where it will build its second facility in that country. In December, Digital Realty raised $600 million from the Singapore IPO of its Digital Core REIT, with Asian investors rushing for a piece of the trust’s portfolio of North American data centres.

In a report published this week Cushman & Wakefield said that Asia Pacific is set to become the world’s largest data centre market in terms of capacity over the next decade as construction of more server hosting facilities gets underway.