According to a report by the Nihon Keizai Shimbun (Nikkei) on November 8, Japanese real estate company Mitsubishi Estate plans to build 14 data centers in the United States by 2030.
The total estimated project cost is 2.3 trillion yen (approximately 22 trillion won), with Mitsubishi Estate planning to invest 180 billion yen (about 1.7 trillion won). The remaining funds will be raised from institutional investors and other companies.
The development and operation of the data centers will be handled by TA Realty, Mitsubishi Estate’s U.S.-based real estate management subsidiary.
Mitsubishi Estate has already completed one data center in Virginia on the East Coast of the United States. The company plans to build additional data centers in Virginia, Georgia, Illinois, and other locations in the future.
The combined power capacity of the 14 data centers is expected to be about 2,800 MW (megawatts), which is said to be equivalent to 2.5 times the capacity of facilities currently operating in Tokyo.
Mitsubishi Estate aims to attract U.S. cloud service providers such as Amazon.com and Google. It is reported that two or three of the data centers have already secured tenants among U.S. IT-related companies.
Nikkei explained, "In Japan, the business environment for real estate development is deteriorating due to rising material and labor costs, leading to construction delays and reduced profit margins. However, data center construction continues, driven by the rapid spread of generative artificial intelligence (AI)."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
