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Mitsubishi and Digital Realty partner to invest US$1.8bn in data centres

Wholesale colocation provider Digital Realty has landed one of the company’s largest partnerships to date in CAPEX terms with Japanese trader Mitsubishi to build data centres in Japan.

The joint venture will create a new company called MC Digital Realty, which will operate on a 50/50 basis between the two existing firms, and will start with an initial capital of more than ¥400mn (approx. £2.7mn).

MC Digital Realty, is hoping to take advantage of a move by Japanese companies from predominantly on-premises corporate data centres into facilities operated by third-party service providers.

The portion of corporate IT still housed in companies’ own data centres is much higher in Japan than it is in mature North American and European markets, according to the launch announcement.

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The two companies feel Japan lacks the kind of facilities that cloud operators want, so MC Digital Realty will build them.

Using Digital Realty’s Saito facility in Osaka and Mitsubishi Corporation’s Mitaka facility in Tokyo, jointly worth approximately ¥40bn, as seed assets, MC Digital Realty aims to manage over ¥200bn worth of assets by 2022 through the acquisition and development of new and existing property.

The data centre operating company is seeking to provide clients with robust facilities, high level physical security, steady electricity supply, air conditioning and other key requirements, utilising the operational expertise that both Digital Realty and Mitsubishi have developed through years of experience.

The new joint venture represents the fusion of Digital Realty’s global client base, industry-leading design and construction capability, and high-capacity data centre operational experience with Mitsubishi Corporation’s significant expertise in the Japanese real estate and IT markets.

In total, the two organisations are expected to invest ¥200bn, around US$1.76bn, in the construction of 10 data centres by 2022, according to Nikkei.

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