ESR Group Limited (“ESR” or the “Company”, together with its subsidiaries as the “Group”; SEHK Stock Code: 1821), APAC’s largest real asset manager powered by the New Economy, has today begun construction of its first 19.2MW data centre (ESR Cosmosquare OS1) at Nanko Kita, Osaka, Japan.

ESR Cosmosquare is a 96 MW hyperscale DC campus being developed over three phases (OS1, OS2 & OS3) in Nanko Kita, Osaka City, within 10km distance of the major internet and telecom exchanges in Osaka central business district (CBD). The OS1 site will be completed in July 2024 and is designed for cloud service providers, data centre operators and enterprises that are already providing services in Osaka CBD and for those that wish to bring new services into central Osaka.

The data centre market in Japan, which encompasses facilities, hosting, outsourcing, and managed services, was valued at US$10.7 billion* in fiscal year 2021. With the growing importance of information technology operations and solutions, the market is projected to increase steadily in the coming years and to reach a value of US$15.2 billion* by fiscal year 20271. Japan’s booming demand for cloud service solutions is driven by its manufacturing, automotive, and financial services sectors as well as healthcare and government services. The accelerating migration of IT workloads from on-premise to cloud data centres in the world’s third largest economy is enabling companies and government agencies to seize the opportunity to innovate and achieve higher resource utilization, resiliency, security and energy efficiency.

Jeffrey Shen and Stuart Gibson, ESR Co-founders and Co-CEOs, remarked, “We are tremendously excited to break ground on our first Osaka data centre development, creating a campus-style asset with expansion capability in a prime location of a high growth market. This development is an important milestone in ESR’s strategic data centre initiative to develop data centres across key markets in APAC.”

As part of ESR’s commitment to ESG and the development of environmentally friendly and industry leading data centre solutions, ESR Cosmosquare OS1, once completed will target LEED NC v4 ‘Gold’ certification. The building is designed with an efficient cooling system to reduce energy use and minimize the need for chillers. The modern design has been developed to reduce energy while ensuring high reliability and flexibility for our customers.

Diarmid Massey, CEO of ESR Data Centres said, “Central Osaka has growing demand for modern, energy efficient digital infrastructure. The ESR Cosmosquare campus delivers state-of-the-art data centre capacity, scalability and flexibility to support hyperscalers and colocation operators as well as the Japanese government’s accelerating digitisation transformation initiative.”

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