VIEWPOINT VIEWPOINT NOVEMBER 2017
Japan’s Data Centers Represent Opportunity for Savvy Investors
V I E W P O I N T JAPAN DATA CENTRE
Hiroshi Okubo CBRE Research, Executive Director Fuminori Asaki CBRE Research, Associate Director
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NOVEMBER 2017 CBRE Research
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1. D A T A C E NT R E S – A N AR E A O F G R O W ING INT E R E S T AMO NG R E A L E S T A T E INVE S T O R S
Figure 1：Expected NOI yields by asset type
Source : CBRE, November 2017. NOVEMBER 2017 CBRE Research
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Figure 2：Expected NOI yields for data centres by region 7.0 6.5 6.0 5.5
5.0
Source : CBRE
4.5 Central Tokyo
Greater Tokyo
Central Osaka
Greater Osaka
Other areas
Source : CBRE, November 2017.
2. D A T A C E NT R E S HO R T A G E
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3. KE Y C R IT E R IA W HE N S E LE C T ING A S IT E F O R D AT A C E NT R E D E VE LO PME NT 3. 1. KE Y E L E ME NT S A R E E LE C T R IC PO W E R , C O MMU NIC AT IO NS AND NA T U R A L D IS A S T E R S
Figure 3：Key criteria when selecting a data centre site
Source : CBRE, November 2017.
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3- 2. E L E C T R IC PO W E R A VA ILA B ILIT Y
Figure 4 : Relationship between contracted electric power and voltage (case of TEPCO)
REQUIRED ELECTRIC POWER / VOLTAGE
Contract Voltage (V) 140,000 140,000 Super High Voltage
60,000 60,000 20,000 20,000
High Voltage
6,000 6,000
Low Voltage
200 200
0
10
20
30
40
50
60
Contract Power (MW)
Source : CBRE, November 2017.
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3- 3. C O M M U NIC A T IO NS E NVIR O NM E N T
Figure 5 : Physical distance is important
Source : CBRE, November 2017.
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3. 4. NA T U R A L D IS A S T E R R IS K
3. 5. S U MMA R Y : W HA T IS A G O O D LO C AT IO N F O R A D AT A C E NT R E ?
Figure 6 : Regions of particular interest to investors as data centre locations First priority
Second priority
Central Tokyo (15km from Tokyo st.) Greater Tokyo (50km from Tokyo st.) Central Osaka (15km from Osaka st.) Greater Osaka (50km from Osaka st.) Other areas 0%
10%
20%
30%
40%
50%
60%
70%
80%
Source : CBRE, November 2017.
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4. C U R R E NT IS S U E S W IT H R E G AR D T O S E C U R ING LAND F O R D AT A C E NT R E S 4. 1. T IME T A KE N T O S E C U R E PO W E R S U PPLY IS A B O T T LE NE C K
4. 2. D A T A C E NT R E INVE S T ME NT S T R AT E G Y
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5. A PPE ND IX 5. 1. T HE INVE S T ME NT F O R MAT F O R T HE R E AL E S T A T E INVE S T O R
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Figure 7 : The investment format for the real estate investor
Source : CBRE, November 2017.
5. 2. D A T A C E NT R E - S PE C IF IC IND IC AT O R S
Figure 8 : Relationship between area/number of racks and electric power Explanation Server room Rack IT Load PUE (Power Usage Effectiveness)
Specs for general data centres
Room for computers
40-50% of gross floor area
Racks upon which computers are installed
About 3 sq. m. per rack
Power supply to computer excluding power for other facilities such as air-conditioning and lighting
6-8kVA per rack on average
Ratio of how efficiently a data centre uses energy (where 1.0 is the most effective) PUE=[Total Facility Energy]/[IT Load Energy]
Effective value average: 1.5-2.0
Source : CBRE, November 2017.
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CBRE GLOBAL RESEARCH
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