CapitaLand Investment to seed future data centre fund with US$700m investment in Japan

It is making disciplined acquisitions without acting like ‘a kid in a toy store’, says CLI’s Manohar Khiatani

ASSET manager CapitaLand Investment (CLI) will invest more than US$700 million in a freehold land parcel in Osaka, Japan, to develop a data centre with 50 megawatts (MW) of capacity.

The company announced on Tuesday (Feb 4) that the investment will seed a future data centre fund.

In an interview with The Business Times, CLI senior executive director Manohar Khiatani said that the company is bullish on data centre demand, and that the move is part of its strategy of leveraging different liquidity pools to grow its portfolio.

He noted that CLI has added 23 data centres to its portfolio since 2021. In total, the company manages 27 such centres in Asia and Europe, with about 800 MW of capacity. On a completed basis, these amount to some S$6 billion in assets under management.

Khiatani attributes the company’s ability to quickly scale up its data centre exposure to its on-the-ground presence in more than 40 countries. These include India, China, South Korea, Japan and Singapore, where the company is focused on seeking data centre opportunities.

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