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GDS partners with Gaw, plans 40MW data center campus in Tokyo, Japan

Chinese data center firm GDS is partnering with real estate private equity firm Gaw Capital and expanding into Japan.

The two companies this week announced they will jointly invest in the construction of a data center campus with a total IT capacity of 40MW in Fuchu City, Tokyo.

GDS and Gaw plan to develop a carrier-neutral data center park on two adjacent plots of land in the Fuchu Intelligent Park. The land was acquired by Gaw Capital Partners through a fund under its management, some 30km west of the Japanese capital.

Gaw had previously announced plans to develop data centers in Fuchu. The plots cover a total area of 10,970 sqm (118,080 sq ft) and the first phase is scheduled to be put into operation at the end of 2026.

GDS said it has received preliminary intention orders from some customers. "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,” said Huang Wei, chairman and CEO of GDS.

“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.”

GDS was founded in 2006 and operates dozens of data centers across Greater China, including in Suzhou Kunshan, Chengdu, Shanghai, Shenzhen, and Beijing. The company counts STT GDC among its investors.

Its international unit, GDS International, was established in 2022 and currently operates in Hong Kong, Singapore, Malaysia, and Indonesia. The company says its portfolio comprises 330MW of data center capacity in service and under construction and a further 340MW held for future development.

GDS International announced Jamie Khoo as CEO last month alongside a $587 million equity raise. The company has previously said it was looking to sell its international operations.

Gaw acquired the Fuchu Building located in Fuchu Intelligent Park in Fuchu City in April 2022. At the time, the company said it planned to develop a 40MW, 4,000-rack data center campus.

Kenneth Gaw, president and managing partner of Gaw Capital Partners, added: "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."

Hong Kong-based Gaw has previously invested in data centers through a joint venture with Centrin in China, and recently broke ground on a data center joint venture with A3 Capital in Malaysia. The company is also building a facility in Batam, Indonesia. Gaw has also announced investments and/or projects in South Korea, and Vietnam. The firm was reportedly interested in bidding for Global Switch, but didn’t make the final bidders' shortlist.

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GDS partners with Gaw, plans 40MW data center campus in Tokyo, Japan