ESR and CloudHQ Team Up for $2 Billion Data Centre Campus in Japan

In a strategic move that underscores the growing demand for data centre capacity in the Asia-Pacific region, Hong Kong-based real estate manager ESR Group has joined forces with U.S.-based data centre provider CloudHQ to develop a $2 billion data centre campus in Japan. The joint venture, announced on Thursday, will deliver a 130-megawatt (MW) hyperscale data centre campus in Nanko Kita, Osaka, over three phases.

The first phase of the project, slated for completion in June 2025, will provide 25 MW of data centre capacity. This significant investment aligns with ESR's accelerated strategy to deliver advanced data centre solutions and capitalise on the insatiable appetite for artificial intelligence (AI) and cloud services, which is driving global demand for data centre capacity.

ESR, one of the largest listed real estate investment managers globally, has a strong conviction in the growth of the data centre market in Japan and across APAC. The company has raised over US$2 billion from investors, including sovereign wealth and pension funds, to develop greenfield and brownfield data centre projects across the region. With more than US$154 billion in assets under management and over 2,000 employees, ESR is well-positioned to execute complex data centre projects and meet the growing demand for capacity.

The Osaka campus is part of ESR's broader data centre pipeline and expansion plans, which include a pipeline of more than 2 GW worth of land and projects across key markets in Japan, Hong Kong, Malaysia, South Korea, and Australia. The campus is strategically located within 10 kilometres of major internet and telecommunication exchanges in the Osaka central business district, making it an ideal hub for data centre operations.



The joint venture with CloudHQ is a testament to ESR's commitment to delivering sustainable and industry-leading data centre solutions. The Osaka campus is designed to achieve Leadership in Energy and Environmental Design (LEED) NC v4 Gold certification, demonstrating ESR's focus on environmental responsibility and energy efficiency.

As the demand for data centre capacity continues to grow, driven by AI, cloud services, and technological advancements, ESR's strategic expansion into the Japanese market, coupled with its strong pipeline of projects, positions the company well to capitalise on this trend. The Osaka campus is a significant step forward in ESR's data centre strategy, further solidifying its position as a leading player in the APAC data centre market.

In conclusion, ESR Group's joint venture with CloudHQ to develop a $2 billion data centre campus in Japan is a strategic move that aligns with the company's broader data centre pipeline and expansion plans. The project, set to deliver 130 MW of capacity over three phases, underscores the growing demand for data centre capacity in the APAC region and ESR's commitment to delivering sustainable and industry-leading data centre solutions.