Japanese powerhouse KDDI and its colocation arm, TELEHOUSE revealed some big expansion plans for the Chinese colocation market. And I don't mean just Hong Kong where they will be adding to an already active expansion project, but Beijing too this time with a new build. The price tag of the expansion will amount to ¥11B, or about $140M.
The new TELEHOUSE data center in Beijing will feature 25,000 square meters of carrier neutral space, and will be operated as a joint venture between KDDI and Beijing Sinnet Technology. Beijing's presence in the world of bandwidth is growing rapidly, but it's still nothing compared with the major Asian sites. The facility will be within the Beijing Economic and Technological Development Zone, which lies to the southeast of the city outside the fifth ring. I spend time each year in Beijing, but I haven't been down that way yet.
Meanwhile, they will be expanding their Hong Kong data center to 20,000 square meters, 2.4 times its current built out size. They just opened the facility about a year ago, but given Hong Kong's status as both a regional and international internet hub it was only a matter of time before they came back for more. There's more room left for expansion there as well, if I recall the total available space was to be 36,000 square meters.
With the Chinese economy as a whole and the real estate market in particular going through a bit of investment withdrawel right now, KDDI is probably picking a good moment to enter. Both the Beijing buildout and the Hong Kong expansion are expected to go online in December of 2012.
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