CyrusOne has broken ground on its first data center construction project in Japan.

CyrusOne KEP, a joint venture between CyrusOne and Japanese utility Kansai Electric Power Co. (KEPCO), this week started work on a data center outside Osaka.

CyrusOne osaka groundbreak
CyrusOne and KEPCO break ground outside Osaka – CyrusOne

Located on a 19,695 square meter (211,975 square foot) plot in the Kansai/Keihanna area, CyrusOne KEP OSK1 will offer 48MW of IT capacity across 11,560 sqm (124,450 sq ft) of technical space within

The four-story building will total six 8MW data halls delivered across three phases. The first 16MW phase will be operational by Q1 2028.

The facility will feature a dedicated substation and photovoltaic (PV) cells on the roof.

“CyrusOne KEP combines CyrusOne’s deep experience in data center design and operation with KEPCO’s immaculate track record for delivering power reliably and sustainably throughout Kansai over many decades, creating a unique partnership that simultaneously optimizes digital and power infrastructure,” said Eric Schwartz, CEO of CyrusOne. “We are incredibly proud of this significant milestone and privileged to celebrate the groundbreaking at our first data center in Japan with our joint venture partners.”

CyrusOne and KEPCO announced a 50:50 joint venture to develop new data centers across Japan in May 2023. The two companies plan to invest at least one trillion yen ($7 billion) over the next decade and reach a business scale of 900MW (600MW IT capacity). Further project plans haven't been shared, but the company has previously said it aims to develop in Tokyo and other major markets across Japan.

“We are delighted to commence this development project with CyrusOne, who we have great respect for and trust in,” added Nozomu Mori, president of KEPCO. "We have exciting plans for our joint venture going forward, with an ambitious target of investing 1 trillion yen over the next decade to reach a business scale of 900MW total incoming power.”

The groundbreaking included a traditional Jichinsai ceremony, led by a Shinto Priest offering prayers for safety during construction and prosperity for future tenants.

Founded in 1951, KEPCO owns and operates dozens of energy generation plants totaling more than 35GW of capacity. The company owns ISP Optage Inc., which last year announced plans to build a new data center in Osaka, as well as real estate development firm Kanden.

KKR-owned CyrusOne operates or is developing more than 40 data centers across the US and Europe, but this is the company's first expansion into Asia.