Digital Edge snaps up five facilities across Japan for $230m
Digital Edge has completed its largest acquisition to date, paying $230 million to Itochu Techno-Solutions (CTC) for of its five data centres in Japan.
The deal adds 5,000 cabinets and 18.5MW of capacity to Digital Edge's presence in Japan and takes its total capacity in the country to approximately 38MW. The five facilities are located in Tokyo, Yokohama and Kobe and as part of the transaction, Digital Edge has also acquired the underlying real estate in four of the five locations on which it plans to pursue new greenfield opportunities to support its growing retail and hyperscale business in Japan.
Company president Kei Furuta said: “Since Digital Edge’s inception, we have been committed to investing in Japan’s digital infrastructure to respond to the market demands in the greater Tokyo and Osaka regions.
"I am pleased to have this opportunity to crystallise a strategic partnership with CTC, as we look to continue operating, modernizing, and expanding these data centers with the latest technologies. The new capacity will further enhance our efforts to build ecosystems around all of our Japan data centers that are linked together by CrossLinkTM, our ultra high-speed connectivity solution,” Furuta continued.
CTC – a major and listed IT services companies – will remain an anchor customer across all five facilities, and will work with the Digital Edge team to continue to grow the business at each location.
“Digital Edge is constantly looking for opportunities to continue expanding in Japan. Looking at the enterprise adaptation of cloud services and CTC’s track record and reputation at delivering outsourced IT services, this strategic partnership is a win-win for not only CTC and Digital Edge, but also our customers,” said Samuel Lee, CEO of Digital Edge.
Eiji Haraguchi, managing executive officer, director of IT services business group, CTC added: "These five data centers have been used by a large number of customers for many years. By collaborating widely with existing and new data centers of Digital Edge, CTC will be able to provide more advanced open hybrid cloud services to its customers. By leveraging Digital Edge’s expertise in data center construction and operations, we are confident that this transaction and the synergy created thereby will accelerate growth opportunities for both parties.”