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PDG, Lendlease Complete Initial 48MW Phase at Greater Tokyo Data Centre

2024/03/28 by Christopher Caillavet Leave a Comment

PDG’s TY1 campus in Saitama City, north of Tokyo

Singapore-based Princeton Digital Group and Australian builder Lendlease have completed construction of the 48-megawatt first phase of the data centre platform’s first project in Japan.

The six-storey facility in Saitama City, 30 kilometres (18.6 miles) north of central Tokyo, is the first of two buildings at the 96MW TY1 campus under development by the Lendlease Data Centre Partners fund, the companies said Wednesday in a release. The gross development value of the campus will exceed A$750 million ($489 million) for Lendlease, with Warburg Pincus-backed PDG investing $1 billion across the life of the project.

The $1 billion LLDCP fund was set up in 2019 with an initial equity commitment of $500 million. The vehicle is 20 percent funded by Lendlease and 80 percent by an undisclosed institutional investor believed to be from Singapore, the Australian Financial Review reported at the time.

“Our completion of construction of Saitama City’s newest data centre represents a major milestone for both Lendlease and our project partner, PDG,” said Lendlease CEO Tony Lombardo. “As one of Asia’s fastest-growing data centre markets, Japan is the ideal location to deliver our first Lendlease Data Centre Partners facility while directly supporting the Japanese government’s efforts to enhance the country’s data capabilities and digital resilience.”

Opening This Year

Scheduled to enter service in the fourth quarter of 2024, TY1 is being constructed on a built-to-suit basis for PDG. The co-location campus, first announced in 2021, is targeting LEED certification with sustainability features like stored rainwater for gardens and toilets and the use of verified carbon credits to offset emissions due to construction works.

Tony Lombardo and Rangu Salgame at Wednesday’s completion ceremony in Saitama

Japan is Asia’s second-largest co-location market, trailing only China, with domestic sales of associated services forecast to grow more than 10 percent a year to reach JPY 3.2 trillion ($22 billion) in 2026, PDG said, citing a Japanese government report.

PDG has 21 data centre projects in 15 cities across China, Singapore, India, Indonesia, Malaysia and Japan. The company’s billion-dollar bet on TY1 shows a commitment to Japan as part of PDG’s pan-Asia growth strategy, said co-founder, chairman and CEO Rangu Salgame.

“Saitama offers stability and scalability in land and power as well as robust connectivity to central Tokyo, creating new opportunities for data centre expansion,” Salgame said. “Working with a reputed partner like Lendlease allows us to continue our strong track record of delivering on our commitments.”

Development Hotspot

With a development pipeline of 1.7 gigawatts, Japan is on track to exceed 3GW of operational capacity within the next five years, Cushman & Wakefield said in its APAC Data Centre Update. Regional leader China has 3.9GW of operational capacity.

Earlier this month, a joint venture of Mitsubishi Corporation and US-based Digital Realty opened a 34MW data centre at the NRT campus in Chiba prefecture, growing the partnership’s portfolio to three facilities in Greater Tokyo and seven overall in Japan.

Also in March, Singapore’s Keppel Ltd signed a tentative deal with Mitsui Fudosan to explore data centre development and investment opportunities in Japan and Southeast Asia.

The private Keppel Data Centre Fund II has a framework agreement with real estate giant Mitsui on the proposed forward purchase of an under-development facility in western Tokyo that will mark Keppel’s first data centre project in Japan, the Temasek Holdings-backed firm said.

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Filed Under: Data Centres Tagged With: daily-sp, Data centres, Japan, Lendlease, Princeton Digital Group, Tokyo

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