The partnership is developing KIX15 in Osaka prefecture’s Ibaraki data centre hub (Image: Digital Realty)
Digital Realty and Mitsubishi Corporation have begun construction of a 24-megawatt data centre in Osaka prefecture’s Ibaraki hub, expanding their Japanese joint venture towards their goal of 10 facilities with 220MW of IT capacity.
MC Digital Realty, the partners’ 50:50 JV, is developing KIX15 as the fifth facility at its KIX campus in Japan’s Kansai region, according to a Wednesday announcement. Operations are scheduled to begin in the fourth quarter of 2028.
The project northeast of Osaka city will combine air and liquid cooling to support high-density computing for hyperscalers, cloud service providers and companies deploying AI infrastructure. The partners did not disclose development costs.
“Japan is a strategic market for Digital Realty and a key part of our long-term growth in Asia Pacific,” said Serene Nah, the NYSE-listed data centre REIT’s APAC head.
Kansai Scales Up
The partners established MC Digital Realty in September 2017, combining Mitsubishi’s real estate and infrastructure expertise with Digital Realty’s operating platform. The venture opened its fourth Osaka facility, the 21MW KIX13, in February 2023, bringing the campus’s IT capacity to more than 70MW.
Digital Realty APAC head Serene Nah (Image: Digital Realty)
“Kansai has a growing opportunity to play a larger role in Japan’s AI economy,” said MC Digital Realty CEO Kohei Yamashita. KIX15 forms part of the JV’s Kansai AI Infrastructure Co-Creation Project, which combines campus expansion with stronger connectivity and tech partnerships.
The Osaka groundbreaking follows the April opening of NRT14 at the venture’s Inzai campus in Chiba prefecture. The third facility at the Greater Tokyo site is expected to bring the campus close to 100MW of IT capacity and supports up to 150 kilowatts per rack, with hybrid liquid and air cooling and Nvidia DGX-ready certification.
Ibaraki is also attracting investment from NTT Global Data Centers, which broke ground on a 36MW campus last October. The first of two 18MW buildings is scheduled for completion in early 2028, with direct liquid cooling and a seismically isolated structure designed to serve hyperscale customers.
South of Osaka city, KDDI began operating its 48MW Sakai AI data centre in January after buying part of Sharp’s former LCD factory complex for $68 million. The Japanese telecom reused the site’s power and cooling infrastructure to deliver the facility in six months.
Japan’s completed data centres are also drawing institutional capital. In September, Keppel DC REIT and its sponsor agreed to acquire a combined 90 percent interest in two Inzai hyperscale facilities from a GIC-Equinix venture, in a transaction valuing the properties and their operating company at $1.2 billion.
Building Across Asia
Beyond Japan, Digital Realty won approval in August to develop 50MW of new capacity on Singapore’s Jurong Island, alongside equivalent allocations to Equinix, ST Telemedia Global Data Centres and Keppel. The four operators committed to exceeding minimum sustainability standards and using green energy to power more than half their new capacity.
The US REIT launched its Malaysian operations in June after acquiring a Cyberjaya campus targeting 32MW across three facilities. The platform includes a newly acquired 15MW data centre and land for a further 14MW facility scheduled for completion in mid-2028, with the campus positioned to connect Digital Realty’s Singapore and Jakarta operations.
Digital Realty entered Indonesia in March 2025 through an equal joint venture with Bersama Digital Infrastructure Asia, contributing $100 million for a half-interest in two Jakarta data centres and adjacent expansion land. The venture’s CGK11 facility opened with 5MW of IT capacity and is planned to support up to 32MW through expansion.
In India, the company’s Digital Connexion venture with Brookfield and Reliance Industries announced plans last November to invest $11 billion over five years in 1 gigawatt of AI data centre capacity. The proposed campus would occupy 400 acres (162 hectares) in Visakhapatnam, Andhra Pradesh.
Digital Realty’s sponsored trust is also shifting capital from North America to Asia. In August, Singapore-listed Digital Core REIT agreed to sell interests in three North American data centres to its sponsor for $316 million, outweighing planned acquisitions of $176 million in Osaka and Singapore assets.
The purchases would raise the trust’s stake in Digital Osaka 3 to 45 percent and establish a 2.5 percent interest in 11 Loyang Close. The reshuffle also earmarks $117.4 million for debt repayment and up to $20 million for unit buybacks.
AloJapan.com