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Digital Realty Opens First Japanese Data Center, Buys Adjacent Land Parcel

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Digital Realty has officially opened Digital Osaka 1, its first data center in Japan.  The new facility spans approximately 93,000 square feet and provides 7.6 megawatts of IT capacity.

Digital Osaka 1’s architecture enables the company to support the data center and colocation requirements of global cloud providers in Osaka.

Digital Realty also revealed the acquisition of an adjacent land parcel for the development of a Digital Osaka 2 data center. Upon completion, the Osaka connected campus will support up to 27 megawatts of additional IT capacity.

“We are very excited to open our first data center in Japan, expand our global network, and provide critical infrastructure for our customers with IT deployments in Osaka,” says Edward Higase, Managing Director, Asia Pacific for Digital Realty. “Digital Osaka 1 was fully leased prior to the official opening, a reflection of the strong demand in the Japanese market for Digital Realty’s comprehensive data center solutions. The development of our Osaka connected campus will enable us to further expand our world-class data center platform and support our customers’ rapidly growing demand here and around the world.”

Osaka is a thriving financial and colocation center and a gateway for international exchanges. The Kansai region centered around Osaka has a population of approximately 20 million people and a GDP of approximately 80 trillion yen.  It is home to a broad cross-section of companies spanning a wide variety of industrial fields, as well as universities and specialist organizations carrying out high-level research and technological development.

“We are very pleased to expand our footprint in Osaka and to continue building upon our relationships and community in this global financial and colocation hub,” adds A. William Stein, Digital Realty’s Chief Executive Officer. “With the addition of Osaka to our global connected campus network, customers will soon have new opportunities to connect, extend their reach and find new business opportunities across our global data center platform.”

Japan has become one of the most highly sought-after markets for cloud data center locations, according to a Canalys report. Strict data sovereignty laws and high customer demand are some of the factors pushing cloud service providers to seek data centers in Japan, where personal data is increasingly required to be stored in facilities that are physically located within the country.

“I am very pleased that Digital Realty, one of the world’s leading providers of data center solutions, is establishing a data center in Saito, Ibaraki City,” says Yoichi Fukuoka, Mayor of Ibaraki City, Osaka, in a prepared statement. “For our city planning and the continuous progress of Saito as a base for research and development, we consider this a very meaningful development. Through this opportunity, we hope that Digital Realty will expand its global data center platform and further advance it worldwide.”

In other Digital Realty news, the San Francisco-based REIT recently appointed Laurence A. Chapman as Chairman of the Board, in keeping with the company’s commitment to sound corporate governance practices and longer-term succession planning.

Chapman’s appointment as chairman is effective as of May 8, 2017 and follows his appointment as Vice Chairman in July 2016. The governance principle behind these changes is balancing fresh thinking and new perspectives with experience and continuity, according to a prepared statement.

Former Chairman Dennis E. Singleton will continue to serve on the Board of Directors in his recently appointed role as Chair of the Compensation Committee.

“There is no better successor than Laurence to take over leadership of the Board,” said Mr. Singleton.  “Laurence has served in a key leadership role throughout the company’s growth and evolution since its initial public offering, and he is keenly aware of the technology and industry trends driving the data center landscape of the future.  It has been a privilege to serve as Chairman of Digital Realty’s Board, and I look forward to continuing to serve as a Director.”

Chapman has served on Digital Realty’s Board of Directors since 2004.  In addition to his new role as Chairman, Chapman will continue to serve as a member of the Audit Committee. Singleton joined Digital Realty’s Board of Directors in 2004 and was appointed Chairman in 2012.  Over that time, he has successfully overseen numerous fundamental transitions in Digital Realty’s business, including a significant international expansion and two large strategic acquisitions that have meaningfully enhanced the company’s growth profile and product mix.


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