Asia-focused data center provider Princeton Digital Group (PDG) has revealed its plans to create one of the world’s largest hyperscale data centers in Tokyo, Japan, with a total investment of $1 billion. Since the company’s inception four years ago, Japan is the company’s sixth market. PDG has now reached a key milestone in its goal to establish a 600-Megawatt (MW) portfolio across the area with this investment.
PDG has already acquired land and power, while building of this hyperscale data center is expected to begin later this year. The facility will be built according to the most up-to-date hyperscale design and standards, providing the highest scalability, connectivity, and dependability.
The new Saitama City campus will feature over 100MW of essential IT capacity divided into two stages of 48.5MW each. Saitama City is one of the Greater Tokyo area’s key commercial centers. The PDG Saitama facility is 30 kilometers north of Tokyo and covers 33,047 square meters. The facility is designed to service Japan’s premier hyperscalers in one of the world’s most active cloud marketplaces.
“The Asia Pacific region is set to be the largest data center market in the world, and this announcement underscores our vision to be the market leader in this region,” said Rangu Salgame, Chairman and CEO of Princeton Digital Group. “Over the last four years, through our unique three-pronged strategy of acquisitions, carve-outs and greenfield development, we’ve built a strong portfolio of data centers across key Asian markets such as China, Singapore, Indonesia and India. PDG has become a partner of choice for hyperscalers across multiple countries. Our entry into Japan and, in particular, Tokyo demonstrates our continued ability to enter new markets that matter to our customers.”
Hyperscale Data Center Deployments Tokyo
According to PDG, Tokyo is Asia’s largest data center market outside of China while it is still in its early phases of development, particularly in terms of global hyperscaler entry and expansion. Greater Tokyo’s hyperscale colocation market is anticipated to reach $1.6 billion by 2025, according to Structure Research, with a CAGR of 25.1 percent between 2021 and 2025.
“The Greater Tokyo market is projected to see accelerated demand from hyperscale data center deployments moving forward from what we believe is a convergence of several critical factors,” said Jabez Tan, Head of Research, Structure Research. “That include Japan’s sizeable addressable market as the 3rd largest country in the world by GDP; the absence of a domestic hyperscale cloud platform that presents an ideal competitive landscape between both US and Chinese hyperscale cloud providers; as well as being a key connectivity aggregation and distribution hub for submarine cables landing from the US West Coast to access the rest of the Asia Pacific region.”
Headquartered in Singapore with presence and operations in China, Singapore, India, Indonesia, and Japan, PDG’s portfolio of data centers power the expansion of hyperscalers and enterprises in the fastest-growing digital economies across Asia.