#Japan #Data Center #Kyoto #Greenberg Traurig

Greenberg Traurig's Role in a Hyperscale Data Center Sale in Japan

In a notable transaction in Japan's real estate market, the global law firm Greenberg Traurig, LLP has successfully represented the seller in the sale of a stabilized hyperscale data center located in Keihanna, Kyoto Prefecture. This sale marks one of the largest asset-level transactions for a fully operational, leased hyperscale data center in Japan's history, reflecting a growing demand for digital infrastructure in the region.

Details of the Transaction

The data center, boasting an impressive capacity of approximately 40 megawatts, is under a single lease agreement with a U.S.-based hyperscale cloud provider, highlighting its strategic importance in supporting cloud services demand. The seller, a joint venture between a fund managed by a U.S. institutional investor and a Japanese trading company, illustrates the cross-border interests in significant infrastructure assets. The buyer's consortium consists of CapitaLand Ascendas REIT, which holds a 49% interest, and a fund associated with the Japanese trading company, which acquired the remaining 51%.

This sale reflects a trend in the hyperscale market where major firms are increasingly looking towards Japan as a critical market for expanding their digital infrastructure capabilities. Given the rise of remote work and cloud computing, the demand for robust data centers is on the rise, making such transactions highly significant.

Greenberg Traurig's Expertise

The legal team at Greenberg Traurig that facilitated this sophisticated transaction included Max Sternberg, who serves as counsel from the firm's offices in London and Chicago, along with Ayako Kawano, a shareholder operating in Tokyo. Their combined expertise in real estate transactions proved to be invaluable in navigating the complexities of this deal.

Supporting members of this team included Anja Giddings, a real estate associate from Berlin, and Takayo Himeji, a judicial scrivener. Additionally, their efforts were bolstered by Hiroshi Hara, a local partner in Tokyo, Sayaka Ishimoto, a corporate associate based in Tokyo, and Trina Kwon, who specializes in technology, media, and telecommunications from Washington, D.C.

Greenberg Traurig's Digital Infrastructure Industry Group, which comprises over 110 attorneys across various practice areas, is tailored to support clients in the data center, digital infrastructure, and telecommunications sectors. This group's extensive knowledge allows them to provide comprehensive advisory services—from hyperscale leasing to land acquisitions and joint ventures, protecting the interests of their clients throughout these complex transactions.

A Growing Market

This transaction is particularly noteworthy as it marks the second hyperscale data center sale in Japan where Greenberg Traurig has acted for this client, following a previous deal concluded in November. The increasing frequency of such significant transactions underscores the escalating interest in Japan's digital infrastructure not only from domestic players but also from international investors looking to capitalize on the robust demand environment.

The Bigger Picture

Greenberg Traurig, with its 3,100 attorneys operating in 51** locations across the globe, is well-positioned to offer strategic legal services that are tailored to the unique challenges of cross-border transactions. The firm consistently ranks among the top law firms globally and has a solid reputation for its contributions to philanthropic endeavors, innovation, and pro bono initiatives

In conclusion, as the digital landscape continues to evolve, transactions like this one play a pivotal role in shaping the infrastructure that meets the growing needs of businesses and consumers in an increasingly connected world. The sale of the hyperscale data center in Kyoto not only reflects current market dynamics but also sets a trend for future investments in this essential sector.