CFOtech Asia - Technology news for CFOs & financial decision-makers
Story image
Digital Edge and Hulic join forces for new Data Center facility
Tue, 21st Mar 2023

In a partnership with Hulic, a leading Japanese real estate developer, Digital Edge is set to develop a carrier-neutral data center facility in downtown Tokyo, Japan.

The project, known as TYO7, is designed to provide much-needed interconnect-focused colocation capacity to one of the world’s largest data center markets as Digital Edge further establishes its platform across APAC.

“This strategic project is another important step in our journey to build a regional platform and establish a thriving digital ecosystem across Asia,” says Samuel Lee, Chief Executive Officer, Digital Edge.

“We are pleased to partner with Hulic, a well-respected Tokyo based real estate developer, to leverage their local market knowledge alongside our data center know-how to provide much-needed digital infrastructure capacity in the heart of Tokyo.”  

The global pandemic has continued to accelerate the pace of Japan’s digital transformation and its recognition as a leader in data-driven businesses.

Japan’s IoT market is expected to grow at a CAGR of 23% over the ten years between 2017-2027, while edge applications in Japan are witnessing an expected CAGR of 20.03% over the decade (2021-2030).

Tokyo’s data center market is valued at USD $2.2 billion as of 2021, but despite increasing demand, the ability to develop data centers in the network-dense downtown area of Tokyo is challenging. This makes retail colocation spaces in the central location a highly sought-after resource, particularly by network, cloud, and enterprise customers.

“This project marks our ninth data center in Japan and will provide depth to our existing platform, offering much needed high quality colocation and interconnection options to customers in downtown Tokyo,” says Kei Furuta, President & Chief Revenue Officer, Digital Edge.

“This small but strategically located site will complement our other facilities that cater to enterprise, hyperscale and high power density applications, as we further contribute to the development of Japan’s vital digital infrastructure.”

TYO7 is an interconnect-focused project designed to address unmet demand and further enhance the Digital Edge ecosystem in Tokyo.

The new facility will be situated only 1 km from Otemachi, the central network hub of Japan, and less than 300m from the company’s existing TYO2 site (formerly known as ComSpace I), which is one of the most network-dense data centers in Tokyo. 

Cross Link and additional third-party carrier connectivity solutions will provide customers with various options to access Digital Edge’s virtual Tokyo campus and other key data centers in the metro.

The new facility will sit in the dark fiber reach area of the Nihonbashi-Kobuna-cho district, which is close in proximity to the financial district in Tkyo, making it ideally located for both domestic and international carriers.

It will also benefit major enterprise customers looking to expand their network and IT infrastructure in the metro.

“As we look towards the future, we are excited to commence our first data center operation and development project at such an important site in Hulic’s history,” says Tadashi Nakajima, Senior Executive Managing Officer, Hulic.

“Digital Edge’s experienced management team with their proven track record in Asia make an ideal partner for us as we establish a foothold in Tokyo’s fast growing data center industry and continue to offer the essential services our customers need to thrive.”

It will serve as a natural  extension for existing TYO2 customers. TYO7 will operate under the  Digital  Edge brand name and is expected to be Ready-for-Service in early 2025.