Telehouse, a subsidiary of KDDI, buys Allied Properties' data center holdings for $1 billion

Telehouse has entered the Canadian market with the acquisition of three data centers. KDDI, the parent company of the data center company, announced this week that it had acquired three data centers and the associated assets in Toronto, Canada, from Allied Properties REIT. KDDI paid $1.02 billion for the portfolio and will establish KDDI Canada, Inc. as a new local entity.

The Allied data center portfolio consists of freehold interests in 151 Front Street West, 905 King Street West, and 250 Front Street West, as well as a leasehold interest in 151 Front Street West. It excludes 20 York Street, the location of Union Centre. KDDI stated that the facilities would provide 30MW of IT demand upon completion.

In November 2022, Allied announced that it was considering the sale of its data center portfolio. The company verified in January that it was actively seeking a buyer for its portfolio of urban data centers (UDC).