Data center, colocation, and interconnection service provider Digital Realty (NYSE: DLR) says it has formed a joint venture with Mitsubishi Corp. to provide data center services in Japan. Operating under the name MC Digital Realty, the 50/50 joint venture will combine Mitsubishi's local business experience and Tokyo data centers with Digital Realty's worldwide client base and data center operational experience.
Mitsubishi will provide two existing data center facilities in Mitaka, a western Tokyo suburb, while Digital Realty will supply its recently completed data center development project in Osaka. The three seed assets are collectively valued at approximately 40 billion Japanese yen (approximately $350 million).
"Japan is a developed market, with a highly advanced technology sector that is expected to experience rapid growth over the next several years, yet the local data center market remains highly fragmented with a shortage of institutional quality data center capacity," said Chris Kenney, Digital Realty's senior vice president, international. "We see tremendous opportunity for growth in the Asia Pacific region over the next several years, and we expect the MC Digital Realty joint venture will significantly enhance our ability to meet the growing data center demands of the Japanese market."
Earlier this year, Digital Realty announced the opening of its first data center project in Japan, Digital Osaka 1. According to the company, Digital Osaka 1 covers about 93,000 square feet, provides 7.6 MW of IT capacity, and was fully leased before the official opening. Digital Realty also announced that it acquired an adjacent land parcel for the future development of an Osaka connected campus. Once finished, the campus will support up to 27 MW of further IT capacity.
In October 2015, Digital Realty acquired Telx, positioning the company to provide an array of data center services to meet customers' needs in worldwide markets.
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