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Goodman Group expands data centre capacity in Asia
Fri, 26th Jan 2024

Goodman Group, the global industrial property and digital infrastructure company, has announced a considerable expansion of its data centre capacity in Asia as a part of its focused strategy in this sector.

The key development involves an agreement for a new data centre campus in Tsukuba City, Greater Tokyo, Japan, that will offer an available 1,000 MW of power. Goodman Group has already begun infrastructure works on the site with the first data centre facility set to be complete by 2026.

The company has also entered into a Heads of Agreement with a customer to lease the first 50 MW data centre that will be developed at the new Tsukuba campus.

Goodman's Head of Asia, Paul McGarry, stated: "Our ability to secure land and power in high demand locations in the tier 1 markets of Japan and Hong Kong has resulted in a very valuable power bank of 1.8 GW in Asia. This power bank, combined with our planning, architectural and engineering capabilities, and strong balance sheet, means Goodman is well positioned to continue to meet the growing demand for new, high value, high-tier data centre facilities in major cities across Asia."

Additionally, the Group has started construction on a 50 MW data centre in Tsuen Wan, Hong Kong SAR, slated for completion in 2026. This move has been triggered by the surging demand for data centre facilities in Hong Kong, with hyperscalers recently signing US $2 billion worth of uptake agreements in just the past six months.

McGarry observed: "Tsuen Wan is a highly sought after availability zone, a key focus location for us since 2014, when we acquired an end-of-life, industrial property. Since then, we have been regenerating the site into the 225 MW Tsuen Wan West data centre campus. Together with the redevelopment of the old Goodman Texaco Centre warehouse, we are demonstrating how we are increasing the value of our existing portfolio through the development of data centres.”

As part of its portfolio, Goodman Group has already developed data centres and powered sites globally that carry a combined power of 0.6 GW. Presently, it has a global power bank of 3.7 GW, comprising completed facilities, secured power and potential data centre projects across 12 major international cities. The company is making strides in leveraging this potential for its data centre strategy in Asia by opening a new office in Singapore.

Hugh Baggie will take charge as Managing Director of Data Centres for Asia, leading the new regional office and connecting customers and capital partners with Goodman's data centre development and delivery capabilities across the region. Prior to this role, Hugh managed Goodman’s $9 billion Hong Kong portfolio and brings over 18 years of real estate and finance experience to the table.

McGarry concluded that the data centre sector would continue to be an area of growth for Goodman, with Asia remaining a focus due to the market’s stress on supply and demand. The company is set to harness its capital, land, and secured power along with its proven engineering and delivery capability to continue to deliver large-scale, high-value data centres.