Gaw Capital expands data center business

Gaw Capital Partners, a Hong Kong-based real estate investment company, has just purchased an additional plot of land in Japan to expand its data center in the context of booming artificial intelligence (AI).

According to a company statement, Gaw Capital has purchased an 11,233 square meter plot of land in Fuchu Intellectual Technology Park, a cluster of data centers, thereby expanding its presence in the sector. The new site, about 30 kilometers from central Tokyo, is expected to double the size of data centers in the area, becoming Fuchu City’s largest database of information technology capabilities.

The sale shows that private investment firms are rushing into the data center market in Asia due to the AI ​​boom. According to data from Cushman & Wakefield, demand for data centers in Southeast Asia and North Asia is expected to grow about 25% per year through 2028, much higher than the US level of 14%. As of the third quarter of 2023, Gaw Capital had raised $22.3 billion and was managing $33.7 billion in assets, according to the company’s website .

Ms. Isabella Lo, Managing Director, Chief Investment Officer and Head of Japan at Gaw Capital Partners, said in the statement: “Technological advances in Japan, especially the strong development of intellectual Artificial intelligence, which requires enormous computing power, will continue to drive demand for data centers.”

In addition to Gaw Capital, other investors are also pouring money into data centers. Alternative asset managers such as Hillhouse Capital, Boyu Capital and CDH Investments are in talks to invest in GDS Holdings Ltd’s data center business outside China. Adani Enterprises Ltd. also plans to invest 500 billion rupees ($6 billion) to build data center infrastructure in western India.