KDDI Corporation, a Japanese telecommunications leader, together with its data center brand Telehouse, has announced the latest expansion of its global footprint in North America by reaching an agreement with Allied Properties REIT to acquire three data centers and its accompanying assets in Toronto, Canada. This investment of CAD 1.35 billion comes as a result of increased demand in the market for reliable interconnectivity services and is an important milestone for KDDI’s expansion plans which will see the company establish a new legal entity, KDDI Canada, Inc.
Starting with the first Telehouse data center in New York in 1989, KDDI has been continuously expanding Telehouse’s presence in new markets for over 30 years, with this recent acquisition bringing the total portfolio of data centers to 12 countries. The new carrier-neutral data centers are located in the city center of Toronto, and when fully operational, will provide over 30MW of IT load.
KDDI’s new data centers will provide both shared and dedicated space to fulfill customer needs, especially those expanding internationally, who require a highly trusted partner to establish their IT environment. Businesses wishing to colocate from the new locations will gain unrivalled access to a variety of connectivity partners, including carriers, ISPs, ASPs, and the world’s largest private and public cloud service providers, to extend network reach, reduce latency and costs, and improve performance.
Yasuaki Kuwahara, Member of the Board, Senior Managing Executive Officer and Head of Business Solution at KDDI, commented: “This is another milestone achievement for KDDI, and an exciting investment which will enhance connectivity capabilities for Canadian businesses. With many North American organizations accelerating their digital transformation and innovation initiatives, we’re delighted to be able to play a part in their success, offering reliable, scalable, flexible and secure services to modernize and future-proof IT environments.”
Michael Emory, Founder and Executive Chair, Allied Properties REIT, said: “With global data center operating capability, KDDI is an ideal successor owner for our data center assets. Canadian cities continue to grow dramatically and successfully. The growth is driven in large part by knowledge-based organizations that require sophisticated and wide-ranging connectivity solutions. KDDI is extremely well positioned to provide these solutions and, in doing so, contribute meaningfully to the many and varied businesses operating in our cities.”
