FLOW Digital Infrastructure has started construction on a new two-building data centre campus in Central Tokyo, aiming to provide significant IT capacity to the region’s growing digital market.
The data centre, consisting of two buildings named TK7 and TK8, will offer a combined IT load of 30MW. According to FLOW, the first building, TK7, will provide 6MW of IT load and is scheduled to be available for service in the first quarter of 2027.
Expanding Tokyo’s digital infrastructure
Japan remains one of the largest tier 1 data centre markets in the Asia Pacific region. Industry research indicates that the overall data centre market in Japan is expected to expand at a compound annual growth rate (CAGR) of 10.8% through 2027, reflecting significant investment and robust growth.
The hyperscale colocation segment, which serves large-scale cloud and enterprise customers, in Greater Tokyo is projected to achieve a five-year CAGR of 17% from 2024. This projection highlights Tokyo’s importance in supporting high-capacity data centre infrastructure across the region.
FLOW’s new campus will be centrally located near established data centre areas such as Otemachi and Toyosu. The campus is positioned to play a key role in supporting the digital ecosystem of the Greater Tokyo area by providing flexible and scalable solutions designed to meet the increasing demand for digital services.
Commitment to the Japanese market
This development marks a significant milestone in FLOW’s expansion in Asia Pacific and underscores our commitment to Japan as a priority market. We look forward to serving hyperscalers and enterprises with capacity needs in the Central Tokyo area, offering solutions that address the market’s longstanding supply constraints and demand complexities.
FLOW’s Chief Executive Officer, Sanjay Goel, made the statement as the company sets its sights on serving a growing customer base, particularly hyperscalers – large-scale cloud providers – and enterprise clients that require reliable and high-capacity data centre facilities.
FLOW’s regional portfolio
The addition of the TK7 and TK8 buildings will expand FLOW’s portfolio to a total of eleven assets across Japan, Korea, Philippines and Malaysia, bringing total current and planned IT capacity to over 170MW.
The company is aiming to support accelerating digital transformation in Japan, which is being driven by increasing adoption of digital technologies and artificial intelligence across a range of industries.
Market growth context
The demand for colocation data centres in Japan has been rising as businesses increasingly shift their operations to the cloud and seek to leverage new technology, such as artificial intelligence. This demand is placing greater pressure on Central Tokyo, where available capacity has historically lagged behind market needs due to supply constraints.
Reports by JLL and Structure Research highlight the strength and momentum of Japan’s data centre market. The JLL report projects a 10.8% CAGR for the national market through 2027, while the Structure Research report forecasts a 17% CAGR for hyperscale colocation in Greater Tokyo from 2024.
Strategic location and future outlook
By situating its campus in Central Tokyo, FLOW aims to provide data centre services in close proximity to major business districts and technology clusters. This location is expected to facilitate connectivity for customers seeking to expand their digital infrastructure in Japan’s capital.
The planned capacity and timeline for the completion of the first building, TK7, places FLOW among the expanding segment of data centre providers investing in the Japanese market’s digital growth.
AloJapan.com