• Investors are displaying a growing interest in data centres as a new asset class for real estate investment. With yields falling for almost all real estate asset types in Japan, relatively high yields are one of it’s attractions.
  • The number of new data centres in Japan has been stagnating and there is a growing sense that there is a shortage of data centres. In addition, recent surveys indicate that real demand for data centres will continue to expand.
  • There are three key criteria when choosing the location for a data centre: (1) power supply availability, (2) network quality, and (3) minimising natural disaster risk.  More specifically, a site well suited to data centre would: have the availability of super-high voltage of at least 60,000V; be within a 50km radius of city central; and be in a region with low natural disaster risk. In Japan, the considerable time taken to secure power supply is a bottleneck to establishing sites for data centre use.