STT GDC, Goodman to Develop 60 MW Tokyo, Japan Data Centers

ST Telemedia Global Data Centres (STT GDC), a carrier-neutral data center operator headquartered in Singapore, today announced its expansion plan for two new data centers in Tokyo, Japan, which will be developed by and pre-leased from Goodman Group, an Australian owner, developer, and manager of industrial property.

Notably, STT GDC’s partnership with Goodman Group marks the company’s entry into the Japan data center market.

Tokyo, Japan Data Centers – STT GDC

STT GDC’s two new data centers in Tokyo, Japan comprise a development potential of 60 megawatts of IT power across two buildings, spanning 646k sqft (60k sqm) of gross floor area. Specifically, STT GDC’s Tokyo, Japan data center campus will be located within Goodman Business Park in Inzai City, Chiba Prefecture, within the Greater Tokyo area.

Goodman Business Park is an industrial and data center estate which will comprise 8.6+ million sqft (800k+ sqm) of lettable area upon completion.

Development Plan

Goodman Japan will develop the shell and core of the Tokyo data centers and pre-lease the buildings on a long-term basis to STT GDC. Subsequently, STT GDC will fit-out and then operate the data centers, with the first building expected to be ready for service in Q2 2024.

Customers

STT GDC will target the significant capacity demands of hyperscale companies and enterprises seeking large-scale facilities. For example, in May 2019, Google purchased land at Goodman Business Park in order “to meet the growing needs of Google Japan’s customers, such as Cloud”.

Additionally, STT GDC’s hyperscale data centers will support the expansion of 5G communication services in Japan. Indeed, by 2029, Japan is estimated to reach 151 million 5G subscriptions in the country.

ST Telemedia Global Data Centres (STT GDC) – Overview

STT GDC is a portfolio company of Temasek, Singapore’s sovereign wealth fund. The company’s portfolio consists of 130+ data centers across Singapore, India, China, Thailand, South Korea, Indonesia, and the UK. Below are further details on STT GDC’s data center holdings:

• Singapore: STT GDC owns 8 data centers in Singapore located in the East and West of the city
• India: through STT GDC India, the company manages 19 facilities with 135+ megawatts of critical IT load. Specifically, these data centers span nine major cities including Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, Ahmedabad, Pune, and Noida
• Thailand: through a joint venture with Frasers Property. STT GDC’s Bangkok 1 is an operating hyperscale data center with 20 megawatts of total IT load capacity
• South Korea: through a joint venture with Hyosung Heavy Industries, STT GDC is developing a data center campus in Seoul
• Indonesia: through a joint venture with Triputra Group and Temasek. STT GDC is developing a new data center in Jakarta, Indonesia with up to 72 megawatts of critical IT capacity

Additionally, STT GDC owns significant ownership interests in data center operators in China and the UK, operating under separate entities.

• GDS Holdings (NASDAQ: GDS): carrier-neutral data center operator in China, of which STT GDC exercises 32% of the voting power
• VIRTUS Data Centres: UK data center operator, with campuses in the Greater London area, which is 100%-owned by ST Telemedia. Overall, the company operates 11 data centers, representing 178+ megawatts of power capacity, across 830k sqft (77.0k sqm) of space

Japan Data Center Market – Competition Increasing

Over the past 12 months, Japan’s data center market has been receiving sizable financial commitments from a number of global data center operators – both public and private. Below are ten recent examples of noteworthy data center expansion plans in Japan:

1. AirTrunk: constructing a new 300+ megawatt hyperscale data center campus in Inzai, Tokyo, with a 60-megawatt first phase
2. CPP Investments, Mitsui, Fidelity Investments, and Colt DCS: CPP Investments through a joint venture with Mitsui is developing hyperscale data centers, in-partnership with Fidelity and Colt DCS. Specifically, these facilities will comprise 90 megawatts of power capacity in greater Tokyo and Osaka, Japan
3. DigitalBridge (Vantage Data Centers, AgileDC): constructing its Tokyo (HND1) campus with 80 megawatts of critical IT load. Also, Vantage is developing its Osaka (KIX1) facility which will offer 40 megawatts of critical IT load
4. Digital Edge (Stonepeak Infrastructure): footprint includes three data centers in Tokyo, Japan. Also, the company is developing a 12-megawatt facility in Osaka, Japan that will open in Q1 2022
5. Digital Realty: Tokyo and Osaka, Japan are two of Digital Realty’s five largest global markets based on where the company is allocating its future development capital expenditures
6. Equinix: through its xScale data center joint venture with GIC, Equinix is developing 6 hyperscale data centers in Japan. For example, these facilities include its Tokyo 12x and Osaka 2x sites
7. ESR Cayman: building a campus with 78 megawatts of power capacity and a GAV of $2.15bn in Osaka, Japan
8. Lendlease via Lendlease Data Centre Partners (LLDCP): hyperscale data center development in Tokyo, Japan with a GDV of $600m+
9. NTT Global Data Centers: NTT’s Tokyo 11 data center was recently built with 21 megawatts of overall critical IT load
10. Princeton Digital: developing a 97-megawatt data center campus in Saitama City, Tokyo, Japan (TY1), committing $1bn in investment