Digital Edge, an Asia-focused data center platform, backed by Stonepeak Infrastructure, today announced the acquisition of two data centers in Tokyo, Japan from ARTERIA Networks, a Japanese telecommunications company. Specifically, Digital Edge is acquiring two operational data centers located in Tokyo’s downtown districts of Nihonbashi and Shinjuku, branded as ComSpace I and ComSpace II, respectively.

The transactions will close in two phases. Firstly, the ComSpace II transaction is already completed. Secondly, the ComSpace I transaction closing will occur in Q2 2021.

Transaction Overview – Digital Edge and ARTERIA Networks

ARTERIA Networks’ facilities are two of the most network-dense data centers in the Tokyo market. Therefore, they fit well with Digital Edge’s strategy to focus on retail colocation and interconnection-rich data centers in Asia.

Digital Edge aims to improve the utilization of these data centers, allowing global and Japanese businesses to increase their footprint in Japan. In turn, customers will benefit from the network diversity provided by these highly-interconnected data center assets. Below is additional detail on the two facilities that Digital Edge is acquiring:

ComSpace I (Chuo-ku, Tokyo)

Overall, ComSpace I comprises 39.2k sqft (3.6k sqm) of floor area. Key customers include network operators, internet service providers, and data center operators.

ComSpace II (Shinjuku-ku, Tokyo)

Overall, ComSpace II comprises 100k sqft (9.3k sqm) of floor area. Key customers include application service providers (ASPs), cloud service providers (CSPs), managed service providers (MSPs), and hosting service operators.

Notably, ARTERIA Networks’ ComSpace III (Tokyo), ComSpace III – Annex (Tokyo), ComSpace Toranomon (Minato-ku, Tokyo), and ComSpace West (Osaka-shi, Osaka) data centers are not part of the transaction with Digital Edge.

Digital Edge – Scaling-Up in Asia

Digital Edge’s acquisition of ARTERIA Networks’ facilities will increase its scale in Asia to six data centers in four metros. Specifically, Digital Edge’s footprint includes three data centers in Tokyo (Japan), one in Seoul (South Korea), one in Busan (South Korea), and the development of a 12-megawatt facility in Osaka (Japan) that will open in Q1 2022.

Upon completion of the ComSpace I transaction and the opening of the Osaka facility, Digital Edge will have invested over $200m to buy and build 5.3k cabinets of power capacity.

Japan – Data Center Market

Japan’s public cloud services market is projected to grow by 18.7% annually between 2019 and 2024 to reach $26.4bn. Specifically, private and public investment in digital infrastructure and the Japanese government’s commitment to cloud services is driving this growth.

Overall, Japan is one of the world’s largest data center markets. Indeed, the Tokyo market alone reached 1,000+ megawatts (i.e., 1 gigawatt) of power capacity supply at the end of 2020.

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