Ares Launches Japan Data Center Fund with CPP, GLP

The fund is the first vehicle to be focused on data center development by Ares and it makes the firm one of the largest investors in Japan in the fast-growing digital infrastructure.

Capital of the fund will be used to develop three hyperscale data center campuses in Greater Tokyo which are planned to offer approximately 240 megawatts of IT load in total. Renewable energy solutions and highly efficient cooling systems that use little water will be introduced into these facilities as part of increased focus on ensuring sustainability in infrastructure development.

• Ares’ first Japan-focused data center fund targets hyperscale campuses in Greater Tokyo. 
• CPP Investments leads with US$1.3 billion investment; GLP is a key co-investor.
• Focus on AI, cloud growth, renewable energy, and sustainable cooling solutions.

Ada Infrastructure, the vertically integrated global data center platform that Ares has created through the acquisition of GCP International, will do the development and operations. Ada is assisted by a team of 70 members and has rich experience in implementing large scale complex projects in data centers. Canada Pension Plan Investment Board (CPP Investments) has invested about US$1.3 billion ( 193 billion), or about more than half of the capital, in the fund.

Other significant investors comprise Singapore-based GLP Pte Ltd that maintains an exposure to digital infrastructure assets worldwide and used to own a considerable interest in GCP International. Ares believes that the Japanese data center market will keep presenting investment opportunities going forward because artificial intelligence and cloud computing are driving the growth of low-latency data processing demand.

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The platform of logistics real estate that the firm has established in Japan has given it access to land sourcing and partnerships with key stakeholders, and this has served to increase its capacity to scale in this area. The Japan DC Partners I LP closing is a part of Ares larger initiative to combine its digital and climate infrastructure expertise, as the world witnesses a rising investor demand in resilient real assets backed by technology. Ares has about US$546 billion in assets under management as of now in credit, private equity, real estate and infrastructure.