Singapore REITs continue to expand their investments in Japanese data center assets, driven by growing demand for computing capacity in Japan. Meanwhile, competition for reliable power supply is intensifying.
Singapore-based data center REITs are expanding their asset portfolios in Japan, driven by rising demand for enterprise cloud services and AI workloads. Meanwhile, competition for assets with secured power supply is intensifying.
Analysts who spoke to The Business Times said demand is particularly strong in Japan for high-quality operating data centers with secured power supply. Pritesh Swamy said power supply reliability is becoming one of the most valuable characteristics of data center assets.
According to information reported by W.Media, Digital Core REIT plans to sell its interests in 3 North American assets and use the proceeds to acquire interests in 1 data center in Osaka and 1 data center in Singapore. The proceeds are also expected to be used to reduce debt and buy back shares.
Keppel DC REIT announced this month that it plans to acquire an 88.62% interest in 2 hyperscale data centers in Inzai for approximately ¥168.4 billion. Overall, operating capacity in the Japanese market continues to expand, with most of the additional capacity expected to be pre-contracted.