#Japan #Tokyo #Tokyo Data Center #FLOW Digital #PAG Investments

FLOW Digital Infrastructure Begins New Data Center Project in Tokyo

On July 29, 2025, FLOW Digital Infrastructure, a leading alternative investment firm in the Asia-Pacific region, announced the groundbreaking for a new data center campus in central Tokyo. This facility is poised to become one of the largest colocation data centers in the area, comprising two buildings, TK7 and TK8, with a combined IT load capacity of 30 megawatts (MW). The first phase, TK7, is scheduled to commence operations in the first quarter of 2027, boasting an initial IT load of 6 MW.

Japan is recognized as one of the largest Tier 1 data center markets in the Asia-Pacific region, attracting significant investments and demonstrating robust growth potential. Analysts project that the overall data center market in Japan will grow at a compound annual growth rate (CAGR) of 10.8% until 2027. Moreover, the hyper-scale colocation market in the metropolitan area is expected to expand at an impressive CAGR of 17% over the next five years, starting in 2024. In light of these trends, Tokyo's role in supporting large-scale, high-capacity data center infrastructure has become increasingly critical.

Strategically located near existing data center hubs in Otemachi and Toyosu, FLOW's new campus is designed to be one of the largest colocation data centers in central Tokyo, crucial for supporting the metropolitan area's digital ecosystem. The facility aims to offer flexible, scalable, and cutting-edge solutions to meet the demands of the rapidly advancing digital economy and the growing adoption of AI technologies.

Sanjay Goel, CEO of FLOW, emphasized the significance of this development, stating, "This project marks a pivotal moment in our expansion in the Asia-Pacific region, reinforcing our commitment to prioritizing Japan as a key market. We look forward to providing services to hyperscalers and enterprises to address their capacity needs in Tokyo, as well as offering solutions for longstanding supply constraints and complex demand challenges in the market."

With the addition of TK7 and TK8, FLOW's portfolio will be expanded to include over 170 MW of total IT capacity across 11 assets in Japan, South Korea, the Philippines, and Malaysia.

About FLOW Digital Infrastructure

FLOW Digital Infrastructure focuses on investing, developing, and operating hyperscale, cloud, and enterprise data centers across fast-growing markets in the Asia-Pacific region. Combining extensive industry experience with a customer-centered approach to the development of core and edge infrastructure, FLOW provides comprehensive and critical infrastructure solutions. The company leverages the capital and resources of PAG Real Assets, the real estate and infrastructure investment strategy of PAG, a major investment firm with over $55 billion in assets under management. For more information, visit www.flowdigital.com.

About PAG

PAG is a leading independent alternative investment management firm specializing in three key strategies: private equity, real assets, and credit & markets, primarily focused on the Asia-Pacific region. The firm manages over $55 billion in capital from more than 300 global institutional investors and employs over 790 professionals across 15 locations worldwide. For more details, visit www.pag.com.