Canada Pension Plan Investment Board has established a data centre joint venture with Mitsui & Co. CPP Investments will allocate C$400 million (US$319 million) in equity into the venture.

The venture, Japanese Data Centre Development Fund (Mitsui Fund), will be an investment platform for hyper-scale data centre developments in Japan, initially in the Greater Tokyo and Osaka areas.

“The Covid-19 pandemic has accelerated the demand for data centres globally. In Japan, the scarcity of developable sites near major urban areas such as Tokyo and Osaka and intense capital needs have presented further challenges in developing hyper-scale data centres,” says Jimmy Phua, managing director, head of real estate for Asia Pacific, at CPP Investments. “This investment will help address both the significant demand and constrained supply, providing tenants with high-quality space and service.”

The data centres will be managed by Mitsui’s real estate fund management subsidiary and operated by experienced data-centre operators.