GDS, a developer and operator of high-performance data centers in Asia, and Gaw Capital Partners, a private equity fund management firm, have on Tuesday announced a strategic partnership to build a 40 megawatts (MW) data center campus in Tokyo, Japan.

With GDS making its first entry into the Japanese market, this move marks a significant expansion of GDS’s international footprint into North Asia following its successful growth in Southeast Asia and aims to meet the rising demand for digital infrastructure in Japan, the duo said in a statement.

According to the statement, the partnership will see the development of a carrier-neutral data center campus in Fuchu, West Tokyo, addressing the growing demand for secure, scalable, and state-of-the-art digital infrastructure in Japan.

Gaw Capital Partners, through a fund under its management, has acquired the two adjacent data center sites located in Fuchu Intelligent Park, a well- established data center cluster less than 30km from central Tokyo.

Spanning a total land size of 10,969 square meters and with information technology (IT) capacity expected to reach 40 MW, it will be the largest data center facility in Fuchu City in terms of IT load.

GDS has already garnered preliminary customer demands and the operation is expected to commence by the end of 2026.

It is noted that Japan is one of the world’s largest Tier 1 data center markets with over 3,000 MW of total IT load under development.

Greater Tokyo, known for its extensive domestic and international connectivity, serves as Japan’s largest data center hub, making it an ideal location for GDS’s first entry into the Japan market.

The collaboration between GDS and Gaw Capital Partners also underscores their shared commitment to advancing Japan’s digital infrastructure landscape.

“Japan is one of the three core data center markets in the Asia-Pacific region, with its market size ranked among the top ten globally,

“GDS’s entry into Japan further strengthens our international presence and underscores our commitment to enabling digital transformation,” said William Huang, Founder, Chairman and Chief Executive Officer of GDS.

According to him, the firm’s successful cooperation with Gaw Capital Partners signifies that their international business now fully covers the three most important markets in the Asia-Pacific region outside of mainland China: Hong Kong, Southeast Asia region centered on SIJORI (Singapore-Johor-Riau Islands), and Japan.

“We are thrilled about the opportunities this collaboration presents for our global development,

“Given the booming demand for artificial intelligence (AI), we believe that the international business of GDS will achieve rapid growth,” he added.

Kenneth Gaw, President and Managing Principal of Gaw Capital Partners, said that today marks a momentous step towards a digital future in Fuchu.

“This partnership combines Gaw Capital’s global real estate experience with GDS’s proven track record in operating high-performance data centers, signifying our shared commitment to delivering cutting-edge data solutions that meet and exceed the needs of businesses in the region,” he said.

With its first data center in Japan expected to be operational by 2026, GDS said its expansion reaffirms its position as a leading provider of high-performance data centers in the Asia Pacific region.

GDS offers data center services to hyperscale cloud service providers, large internet companies, financial institutions, telecommunications carriers, IT service providers, as well as large private sector and multinational corporations.

The firm serves over 860 customers as the largest carrier-neutral data center service provider in China. It has over 100 data centers.

Gaw Capital Partners is a uniquely positioned private equity fund management company focusing on real estate markets in Asia Pacific and other high barrier-to-entry markets globally.

The firm’s investments span the entire spectrum of real estate sectors, including residential development, offices, retail malls, serviced apartments, hotels, logistics warehouses and internet data center (IDC) projects.

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