ESR and Colt DCS Partner on Sustainable Data Centre in Japan

ESR and Colt Data Centre Services (Colt DCS) have formed a joint venture to develop the first phase of a 130 MW hyperscale data centre campus in Minoh City, Osaka. The first 65 MW phase will be designed and built by the ESR–Colt DCS partnership and operated by Colt DCS. 

Located in Asia-Pacific’s second largest data centre market, the project supports Japan’s rapid public cloud adoption, AI deployment, and digital transformation initiatives.

Site preparation is already underway, with construction due to begin in 2027. The first phase of the data centre is scheduled to be operational by late 2029.

Strengthening Japan’s data centre capacity

This development combines Colt DCS’ operational experience with ESR’s strong local market knowledge and construction expertise. Together, the companies aim to meet the expanding needs of hyperscale, AI, and enterprise customers in one of Japan’s fastest-growing digital hubs.

Colt DCS already operates its Osaka Keihanna data centre, launched in 2023, while ESR completed its first hyperscale facility, OS1, at its Cosmosquare campus earlier in 2025.

“Colt DCS has built a strong track record of delivering world-class data centres for our hyperscale customers in Japan,” says Niclas Sanfridsson, CEO of Colt DCS. “The joint venture with ESR will allow us to accelerate our expansion in Japan, enabling us to support the expansion plans for our global cloud customers and the emerging AI sector.”

By combining ESR’s capital resources and real estate network with Colt DCS’ engineering and operational strengths, the partnership positions both organisations to deliver reliable and scalable digital infrastructure in Japan’s growing data economy.

Investing in next-generation digital infrastructure

The collaboration forms part of ESR’s broader regional strategy to expand its data centre footprint across key Asia-Pacific markets. The company continues to align development with customer demand for secure, high-performance facilities that can accommodate AI and cloud workloads at scale.

“Japan is a key pillar of our data centre strategy, and our joint venture with Colt DCS marks a milestone in our blueprint to deliver next-generation data centre infrastructure that underpins digital growth across the region,” says Stuart Gibson, Co-Founder and Co-CEO of ESR. “This site draws on our deep expertise in data centre development and reflects our commitment to driving long-term economic value and empowering digital transformation for our customers and the communities we serve.”

Located on approximately 140,000 square metres of land acquired and rezoned by the joint venture, the Minoh site has been developed with support from the local government. It serves as a strategic expansion point for both ESR and Colt DCS as they respond to surging demand for hyperscale and AI-ready facilities.

A focus on sustainability and community integration

The Minoh data centre is designed to deliver high performance and operational resilience while adhering to strict environmental standards. It aims to achieve LEED Gold certification, demonstrating the partners’ commitment to sustainable development.

“Our partnership with Colt DCS complements ESR’s ability to deliver data centres at scale in high-demand markets for capital partners and customers,” says Diarmid Massey, CEO of Data Centres at ESR. “Our purpose-built, high-performance Minoh data centre is being designed to support hyperscale, AI, and large enterprise-driven workloads. Beyond its technical capabilities, the site will be a vibrant hub for local innovation, engagement, and sustainable growth.”

The master plan for the Minoh site also includes improvements to local infrastructure, such as expanded road networks, as well as amenities that benefit the surrounding community. Plans feature an international school, local park, retail spaces, and shared public facilities, reinforcing the project’s role in urban regeneration.

Both ESR and Colt DCS align their data centre development strategies with environmental, social, and governance (ESG) principles. Their joint venture demonstrates how large-scale infrastructure projects can deliver both economic and social value by combining technological capability with sustainability and community development.

The Osaka project highlights how collaborative development models are shaping the future of data centre construction in Asia. By combining local insight, technical expertise, and sustainability goals, ESR and Colt DCS aim to create infrastructure capable of supporting the next wave of digital growth across Japan and the wider region.