Digital Edge Doubles Down in North Asia with Two Data Centers

Singapore-based Digital Edge has added two data centers in Tokyo Japan, with the company signing agreements to acquire ComSpace I and ComSpace II, two data centers located in downtown Nihonbashi and Shinjuku, respectively, from Japan’s Arteria Networks.

While no financial details related to the transaction have been disclosed, Singapore’s Digital Edge will continue to use those centers to provide its own communications services.

Six data centers

The two sites – totaling 140,000 sq. ft. – are located in the downtown areas of Nihonbashi and Shinjuku and represent Digital Edge’s third project in Japan and fourth in North Asia since its inception in 2020.

The latest deal will boost the company’s regional footprint to a total of six data centers in four key metros. This footprint includes three data centers in Tokyo, one in Seoul and one in Busan, South Korea (both acquired from Sejong Telecom) and the development of a 12MW facility in Osaka that is scheduled to open in Q1 2022.

“Our goal is simple: to build an exceptional data center platform that enables customers to easily, efficiently and economically deploy their infrastructure to capture the business opportunities that Asia offers. We are thrilled to have achieved so much, in so short a time and in such strategic markets as Japan and Korea. I look forward to a long and successful partnership with ARTERIA, and to continuing to identify other opportunities to expand in line with market demands and better support our customers in their digital transformation journey,” said Samuel Lee, Chief Executive Officer of Digital Edge.

Growth of public cloud services market

As such, analysts estimate Japan’s public cloud services market will grow by nearly 18.7 percent annually between 2019 and 2024 to approximately $26.4 billion, due to direct private and public investment in ICT infrastructure and the Japanese government’s commitment to cloud services.

Recognized as one of the world’s largest data center markets, with value of approximately US$12 billion in fiscal year 2019 and an estimated CAGR of 3.7 percent from 2021 to 2026, Japan is expected to see a growing need for cloud computing and digital transformation, further fueled by the recent COVID-19 pandemic.

Digital Edge’s strategic partnership with ARTERIA to acquire ComSpace I and ComSpace II aims to enable the Company to better address the needs of customers in light of these market trends. The facilities are recognized as two of the most network-dense data centers in the Tokyo market. Digital Edge is actively evaluating several additional investments and potential partnerships to further expand its digital infrastructure platform in Japan.

Koji Kabumoto, president and CEO of ARTERIA Networks added: “Forming a partnership with Digital Edge makes perfect business sense for us. Transferring two of our data centres leaves ARTERIA free to focus on providing our customers with core communications services.”