Global data center developer/operator CyrusOne has entered Japan by joining forces with Kansai Electric Power Company (KEPCO), a major Japanese electric utility and power provider involved in telecommunications and real estate development. The companies have unveiled their joint venture named CyrusOne KEP, which aims to reach an ambitious data center capacity in Japan of 900 MW.
Bringing together their extensive technical expertise and operational prowess, CyrusOne KEP will focus on developing new data centers specifically tailored to meet the mission-critical needs of hyperscale platform companies. By aligning data center infrastructure with the broader power grid, the collaboration seeks to enhance resilience, efficiency, and smart development in the industry.
Eric Schwartz, the President and CEO of CyrusOne, expressed his enthusiasm for the unique partnership, stating, “This is a unique opportunity to simultaneously optimize digital and power infrastructure by combining data center and power knowledge and capability. KEPCO is one of the largest utility providers in Japan, boasting extensive local expertise. Their knowledge and relationships, along with CyrusOne’s prowess in design, development, and commercial operations of data centers, position us to serve customers with growth aspirations around the world.”
Under this agreement, the companies have established a joint venture with equal investments, leveraging their respective strengths to undertake hyperscale data center development and operations in Japan. CyrusOne KEP plans to make substantial investments totaling at least one trillion yen (equivalent to over $7 billion USD) over the next decade, with the ambitious goal of reaching a business scale of 900 MW.
Data Center Deployments Across Japan
Nozomu Mori, the President and CEO of KEPCO, emphasized the optimal partnership between CyrusOne and KEPCO, citing their deep understanding of power and utility operations, as well as their cultural and organizational flexibility. He noted the growth of the hyperscale data center market in Japan, driven by the increasing volume of data traffic resulting from the expansion of digital technology products and services, which positively impact productivity, entertainment, and security. Mori stated that through this joint venture, the KEPCO Group aims to provide world-class quality service to cloud companies and technology organizations in Japan.
The strategic plan of CyrusOne and KEPCO involves constructing data centers in the Kansai area and other major markets across Japan. The first project is slated to commence in the near future in Kansai, marking the beginning of an exciting chapter in the country’s data center landscape.
The collaboration between CyrusOne and KEPCO signifies a significant advancement in the data center industry. By merging their expertise and resources, these two industry giants are poised to make substantial contributions to the rapidly growing hyperscale data center market in Japan. With their combined focus on resilience, efficiency, and intelligent development, CyrusOne KEP is set to redefine the future of data centers, according to the two companies, meeting the evolving needs of businesses in an increasingly digital world.
