Singapore’s ST Telemedia Global Data Centres (STT GDC) said it will build two data centres in Tokyo, its first digital infrastructure deployment in the country.

The properties will comprise 60,000 square metres (645,000 sqft) of gross floor area, resulting in a development potential of 60 megawatts of IT power across the two buildings.

Under this development and operating arrangement, Goodman Japan will develop the shell and core of the data centres and lease the buildings on a long-term basis to STT GDC.

STT GDC will fitout and then operate the data centres, with the first building expected to be ready for service in Q2 2024.

The data centre campus will be located within Goodman Business Park in Inzai City in the Greater Tokyo area. Goodman Business Park is an integrated industrial and data centre estate with over 800,000 square metres (8.6 million sqft) of lettable area upon completion, with a value of more than A$4 billion (US$2.92 billion).

Bruno Lopez, President and Group Chief Executive Officer, ST Telemedia Global Data Centres, said: “This investment marks our first foray into the Japan data centre market, and with the establishment of 5G services and digital advancements being a high priority, we are delighted to be working with Goodman to support the country’s increasing demand for quality data centre services.”

Greg Goodman, CEO of Goodman Group, added: “With this pre-lease, we will have fully leased eight separate stages of development within Goodman Business Park, which also includes amenity and retail offerings for our customers and the wider community.

“This new partnership with STT GDC illustrates our global strategy of providing high-quality assets in attractive locations to suit our customers’ needs. With several sustainability initiatives planned for this project, we will also continue to execute on our commitment to sustainability and best-in-class amenity for our customers.”

The Japanese data centre market size is expected to grow at a CAGR of around 7% during the period 2020−2026 by when it is expected to top US$10 billion in infrastructure investment, according to research house Arizton Advisory and Intelligence.

The Japanese Growth Strategy Council has called for boosting domestic economic growth through stimulating innovations, digital transformation being a key area.

5G is also expected to become the dominant cellular technology in Japan by 2026, with an estimated 151 million 5G subscriptions in the country by 2029. 

Large hyperscale data centres will play a crucial role in the support of digital transformation initiatives and the expansion of 5G communication services.