ESR and Colt DCS collaborate on major data centre in Osaka

ESR and Colt DCS venture into the data centre market in Osaka with plans to transform Minoh City into a tech hub.

ESR, a prominent real asset owner and manager focusing on Asia-Pacific (APAC), and Colt Data Centre Services (Colt DCS), known for global hyper scale, AI, and large enterprise data centre solutions, have announced a new joint venture. Their collaborative effort aims to establish a 130 MW hyper scale data centre in Minoh City, Osaka, Japan. This venture marks the beginning of a transformative period for Japan's public cloud adoption, digital transformation, and AI-driven solutions.

The initial phase of the site, accounting for 65 MW, will be designed, constructed, and managed by the ESR-Colt DCS alliance. Notably, this site is strategically positioned within APAC's second largest data centre market. This development underscores the region's escalating demand for reliable and advanced data solutions.

Preparations for the site are presently underway, with construction anticipated to commence in 2027 and operational readiness projected for late 2029. This ambitious timeline reflects the joint venture's commitment to delivering timely and high-quality solutions.

This strategic alliance harnesses Colt DCS's unparalleled operational proficiency, amassed through over 25 years within Japan, alongside ESR's distinguished in-market development acumen. Collectively, they aim to deliver superior data centre solutions. Colt DCS's 2023 establishment of the Osaka Keihanna data centre and ESR's 2025 launch of the OS1 hyperscale asset further illustrate their track record.

The Minoh site covers 140,000 square metres of land, already acquired and rezoned in collaboration with the local government. The transformation includes extensive urban regeneration initiatives, encompassing improved road networks and community amenities like an international school and recreational facilities. The venture's commitment to sustainable growth is evident in its pursuit of LEED Gold certification, aligning with their green data centre development goals.

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