GDS Enters Japan in Partnership with Gaw Capital to Build 40MW Tokyo Project
Strategic Expansion Extends Data Center Leader GDS's Reach to North Asia Following Solid Growth in Southeast Asia
HONG KONG SAR - Media OutReach Newswire - 2 April 2024 - GDS (NASDAQ: GDS; HKEX: 9698), a leading developer and operator of high-performance data centers in Asia, and Gaw Capital Partners, a private equity fund management firm focusing on real estate markets in Asia Pacific and other high barrier-to-entry markets globally, today announced a strategic partnership to build a 40 megawatts (MW) data center campus in Tokyo, Japan.With GDS making its first entry into the Japanese market, this move marks a significant expansion of GDS's international footprint into North Asia following its successful growth in Southeast Asia and aims to meet the rising demand for digital infrastructure in Japan.
The partnership will see the development of a carrier-neutral data center campus in Fuchu, West Tokyo, addressing the growing demand for secure, scalable, and state-of-the-art digital infrastructure in Japan. Gaw Capital Partners, through a fund under its management, has acquired the two adjacent data center sites located in Fuchu Intelligent Park, a well-established data center cluster less than 30km from central Tokyo. Spanning a total land size of 10,969 sqm and with IT capacity expected to reach 40 MW, it will be the largest data center facility in Fuchu City in terms of IT load. GDS has already garnered preliminary customer demands and the operation is expected to commence by the end of 2026.
Japan is one of the world's largest Tier 1 data center markets with over 3,000 MW of total IT load under development[1]. Greater Tokyo, known for its extensive domestic and international connectivity, serves as Japan's largest data center hub, making it an ideal location for GDS's first entry into the Japan market. The collaboration between GDS and Gaw Capital Partners underscores their shared commitment to advancing Japan's digital infrastructure landscape.
William Huang, Founder, Chairman, and CEO of GDS, said, "Japan is one of the three core data center markets in the Asia-Pacific region, with its market size ranked among the top ten globally. GDS's entry into Japan further strengthens our international presence and underscores our commitment to enabling digital transformation. Our successful cooperation with Gaw Capital Partners signifies that our international business now fully covers the three most important markets in the Asia-Pacific region outside of mainland China: Hong Kong, Southeast Asia region centered on SIJORI (Singapore-Johor-Riau Islands), and Japan. We are thrilled about the opportunities this collaboration presents for our global development. Given the booming demand for AI, we believe that the international business of GDS will achieve rapid growth."
Kenneth Gaw, President and Managing Principal of Gaw Capital Partners, said, "Today marks a momentous step towards a digital future in Fuchu. This partnership combines Gaw Capital's global real estate experience with GDS's proven track record in operating high-performance data centers, signifying our shared commitment to delivering cutting-edge data solutions that meet and exceed the needs of businesses in the region."
With its first data center in Japan expected to be operational by 2026, GDS's expansion reaffirms its position as a leading provider of high-performance data centers in the Asia Pacific region.
The issuer is solely responsible for the content of this announcement.
About GDS
GDS Holdings Limited (NASDAQ: GDS; HKEX: 9698) is a leading developer and operator of high-performance data centers in Asia Pacific. Its facilities are strategically located in primary economic hubs where demand for high-performance data center services is concentrated. With a track record spanning 23 years, GDS has successfully delivered services to some of the largest and most demanding customers in need of outsourced data center solutions. GDS serves over 860 customers as the largest carrier-neutral data center service provider in China. With over 100 data centers, GDS offers data center services to hyperscale cloud service providers, large internet companies, financial institutions, telecommunications carriers, IT service providers, as well as large private sector and multinational corporations. To learn more about GDS, please visit http://www.gds-services.com.
About Gaw Capital Partners
Gaw Capital Partners is a uniquely positioned private equity fund management company focusing on real estate markets in Asia Pacific and other high barrier-to-entry markets globally.
Specializing in adding strategic value to under-utilized real estate through redesign and repositioning, Gaw Capital runs an integrated business model with its own in-house asset management operating platforms in commercial, hospitality, property development, logistics, IDC, and Education. The firm's investments span the entire spectrum of real estate sectors, including residential development, offices, retail malls, serviced apartments, hotels, logistics warehouses and IDC projects.
Gaw Capital has raised seven commingled funds targeting the APAC region since 2005. The firm also manages value-add/opportunistic funds in the US, a Pan-Asia hospitality fund, a European hospitality fund, a Growth Equity Fund and it also provides services for credit investments and separate account direct investments globally.
Gaw Capital has raised equity of US$22.3 billion since 2005 with assets of US$33.7 billion under management as of Q3 2023.
