Digital Edge acquires two data centers in Tokyo

Digital Edge has announced that it has acquired two data centers in Tokyo, Japan, from Arteria Networks Corporation. The facilities include ComSpace I, which is based in Nihonbashi, and ComSpace II, which is based in Shinjuku. They have 3,641 sq m (39,100 sq ft) and 9,336 sq m (100,500 sq ft) of space respectively.

The transactions are expected to close in two phases, and while the first phase is already complete, the second phase is expected to close in the second quarter of 2021.

These acquisitions boost the company’s regional footprint to six data centers since its inception in August 2020. This is also its third project in Japan.

Digital Edge Press Release on May 11, 2021:

HONG KONG, May 11, 2021 /PRNewswire/ -- Digital Edge (Singapore) Holdings Pte. Ltd. ("Digital Edge" or the "Company"), which aims to transform Asia's digital infrastructure by building and operating state-of-the-art, energy-efficient, connectivity-rich data centers, today announced the addition of two data centers in Tokyo Japan. The Company has signed agreements to acquire ComSpace I and ComSpace II – two fully-operational data centers located in downtown Nihonbashi and Shinjuku respectively – from Japan's ARTERIA Networks Corporation ("ARTERIA").

Representing Digital Edge's third project in Japan and fourth in North Asia since its inception in 2020, the acquisition will boost the Company's regional footprint to a total of six data centers in four key metros. This footprint includes three data centers in Tokyo, one in Seoul, one in Busan, and the development of a 12MW facility in Osaka that is scheduled to open in Q1 2022. Upon the completion of all transactions in Japan and the opening of the Osaka facility, Digital Edge will have invested in excess of US$200 million to offer customers more than 5,300 cabinets of data center capacity.

"Our goal is simple: to build an exceptional data center platform that enables customers to easily, efficiently and economically deploy their infrastructure to capture the business opportunities that Asia offers. We are thrilled to have achieved so much, in so short a time and in such strategic markets as Japan and Korea. I look forward to a long and successful partnership with ARTERIA, and to continuing to identify other opportunities to expand in line with market demands and better support our customers in their digital transformation journey," said Samuel Lee, Chief Executive Officer of Digital Edge.

Analysts project Japan's public cloud services market will grow by nearly 18.7% annually between 2019 and 2024 to approximately US$26.4 billion, due to direct private and public investment in ICT infrastructure and the Japanese government's commitment to cloud services. Recognized as one of the world's largest data center markets, with value of approximately US$12 billion in fiscal year 2019 and an estimated CAGR of 3.7% from 2021 to 2026, Japan is expected to see a growing need for cloud computing and digital transformation, further fueled by the recent COVID-19 pandemic.

Digital Edge's strategic partnership with ARTERIA to acquire ComSpace I and ComSpace II aims to enable the Company to better address the needs of customers in light of these market trends. The facilities are recognized as two of the most network-dense data centers in the Tokyo market. Digital Edge is actively evaluating a number of additional investments and potential partnerships to further expand its digital infrastructure platform in Japan.

"Forming a partnership with Digital Edge makes perfect business sense for ARTERIA. Transferring two of our data centers leaves ARTERIA free to focus on providing our customers with core communications services and enjoy its growth by partnership with Digital Edge. It will be exciting to see Digital Edge leverage its expertise in data center development and operations to create an even stronger platform that enables customers to embrace opportunities today and unlock growth potential tomorrow," said Koji Kabumoto, Representative Director, President & CEO of ARTERIA Networks Corporation.

"Digital Edge is committed to accelerating cloud adoption and digital transformation in Japan by building an exceptional in-country platform in key Japanese metros, such as Tokyo and Osaka – the two prime locations for data centers in Japan. As part of the company's ongoing commitment to expanding its platform footprint, the partnership with ARTERIA gives us access to additional inventory and a strategic, carrier-dense location. Consequently, it will enable global and Japanese businesses to leverage our platform to increase their footprint in the country and enjoy the network diversity provided by world-class data center assets," said Kei Furuta, President of Digital Edge.
The transactions are expected to close in two phases. The first is already completed and the second phase closing expected in the second quarter of 2021, subject to customary closing conditions.

About Digital Edge
Headquartered in Singapore, Digital Edge is a trusted and forward-looking data center platform company, established to transform digital infrastructure in Asia. Through building and operating state-of-the-art, energy-efficient data centers rich with connectivity options, Digital Edge aims to bring new colocation and interconnect options to the Asian market, making infrastructure deployment in the region easy, efficient and economical.
Digital Edge was founded by a seasoned senior management team with decades of industry experience and an established track record of value creation in the data center, cloud and telecommunications industries in the Asia-Pacific region. Backed by Stonepeak Infrastructure Partners, Digital Edge has in excess of US$1 billion in committed capital to establish and drive its data center platform in Asia.

About Stonepeak Infrastructure Partners
Stonepeak Infrastructure Partners (www.stonepeakpartners.com) is an infrastructure-focused private equity firm headquartered in New York that manages US$31.3 billion of capital for its investors (as of February, 2021). Stonepeak invests in long-lived, hard-asset businesses and projects that provide essential services to customers, and seeks to actively partner with high-quality management teams, facilitate operational improvements, and provide capital for growth initiatives.