Mitsubishi Estate plans data center development by 2036

Investing.com -- Mitsubishi Estate plans to develop domestic data centers at a total project cost of ¥1.5 trillion by 2036, according to a report published Friday by Nikkei online. The company aims to meet anticipated growth in artificial intelligence demand.

The firm targets a power capacity of 2,500 megawatts and plans to use its real estate development expertise to expand the business, the report stated.

Mitsubishi Estate clarified that the ¥1.5 trillion total project cost includes joint venture partnerships and debt financing. Current actionable projects are in the hundreds of billions of yen range, while Mitsubishi Estate's own investment amount is only in the tens of billions of yen.

Morgan Stanley estimates that the firm's cumulative investment amount would total approximately ¥100 billion to ¥200 billion if the plan is fully realized.

The near-term impact to earnings and net asset value is likely to be limited, Morgan Stanley said. The firm views the plans as positive in the medium to long term given the potential to become another growth avenue for the company.

Based on the investment timeframe and the firm's own cost burden, Morgan Stanley does not expect the plans to limit capacity for shareholder returns.

You May Also Be Interested In

• Hillman Solutions launches $1.1B debt refinancing, reports Q2 sales
• Tailored Brands files for IPO, plans Nasdaq listing under MENW
• Ocugen signs MENA licensing deal for OCU400 gene therapy