Gaw Capital Partners, a private equity real estate firm based in Hong Kong, has recently completed the acquisition of a new property in Japan. This expansion of their portfolio is strategically aimed at capitalizing on the growing demand for data centers, particularly fueled by the surge in artificial intelligence technologies. The acquired property spans 11,233 square meters and is situated within the Fuchu Intelligent Park, which serves as a hub for data center facilities.
With this acquisition, Gaw Capital expands its footprint in the region, further solidifying its presence. Situated within a 30-kilometer radius of central Tokyo, the property is set to substantially increase the data center capacity in the area. Forecasts suggest that this new facility will effectively double the current scale of data centers in Fuchu City, positioning it as the foremost facility in terms of information technology capacity within the vicinity.
Private equity firms are intensifying their focus on data centers across Asia amidst a surge in artificial intelligence investments. According to data from Cushman & Wakefield, demand in both Southeast Asia and North Asia is projected to grow by approximately 25 percent annually until 2028, surpassing the 14 percent annual growth forecasted for the United States. Gaw Capital, a prominent player in this sector, has demonstrated its commitment by raising a total equity of US$22.3 billion since 2005. As of the third quarter of 2023, the firm boasts assets under management amounting to US$33.7 billion, as indicated on its official website.
“Technological advancements in Japan, especially the ever-growing development of artificial intelligence, which requires exponential computing power, will continue to drive demand for data centres”, said Isabella Lo, managing director, principal of investments and head of Japan at Gaw Capital Partners, in the statement.
Several investors are actively participating in the burgeoning data center market. Hillhouse Capital, Boyu Capital, and CDH Investments, alternative asset managers, are reportedly in advanced negotiations to inject funds into GDS Holdings's data center operations outside China. Meanwhile, Adani Enterprises is gearing up to channel 500 billion rupees (US$6 billion) into constructing data center infrastructure in Western India.