Digital Realty Expands Osaka Facility to 24 Megawatts in Japan Portfolio
Key Facts
Digital Realty announced on October 7, 2026, that construction had begun on KIX15 at its Osaka campus, with planned capacity of 24 megawatts and operations expected to start in the fourth quarter of 2028. The project marks a step in the company’s expansion in Japan, where it is set to add new digital infrastructure capacity. The company said the center will become the fifth facility at the KIX campus when completed. It will also increase the number of data centers in MC Digital Realty’s Japan portfolio to 10. The addition provides a clearer picture of the expansion plans underway in the Japanese market, separate from spending figures that could not be confirmed.
According to the company, total IT capacity in its Japan portfolio will rise to about 220 megawatts after the project is completed. This figure reflects the expected size of the portfolio after KIX15 is added, not the capacity of the center alone; the new center is designed for 24 megawatts. The project is located in Osaka at the KIX campus and will be its fifth facility. MC Digital Realty operates these assets through a 50/50 joint venture between Digital Realty and Mitsubishi Corporation. Digital Realty said the Japanese joint venture brings the two parties together on a 50/50 basis.
The Osaka project follows earlier expansion by the company in Japan. In April 2026, Digital Realty said the addition of NRT14 would bring total capacity at its Narita campus to nearly 100 megawatts. The company said the facility was designed to accommodate AI workloads exceeding 100 kilowatts, with high-density colocation services of up to 150 kilowatts per rack. It said the center uses hybrid cooling that combines liquid and air cooling. The company also said electricity used in NRT14’s colocation hall would be fully matched with renewable energy through non-fossil fuel certificates.
The company linked its expansion in Japan to rising demand for high-density computing, cloud computing and generative AI services. In its Japanese announcement, it said increased use of these services is driving demand for higher-density computing environments, advanced cooling systems and reliable connectivity. According to the company, NRT14’s specifications illustrate some of the technical requirements targeted by its facilities for large workloads, from higher capacity per rack to hybrid cooling. KIX15, meanwhile, adds new planned capacity at the Osaka site, with operations scheduled to start in the fourth quarter of 2028. The project figures remain tied to the construction plan and timeline published by the company.
Third-quarter 2026 results provide context on the company’s commercial activity during the period. Digital Realty reported revenue of $1.9 billion, up 21% from the same quarter a year earlier. It also signed bookings expected to generate $855 million in annualized GAAP rental revenue on a full-share basis, while bookings on the company-share basis totaled $627 million. These figures show booking value under two different ownership measures and do not represent Japan revenue alone. At the end of the quarter, the company reported a record backlog of $2.5 billion in annualized base rent on a full-share basis, or $1.8 billion on its share basis.
Third-quarter indicators also included lease renewals, which recorded rate increases of 11.8% on a cash basis and 17.0% on an accounting basis. These percentages apply to renewal leases signed during the quarter, while the leasing backlog figure reflects booked leases that have not yet begun generating their full annual rent. Digital Realty’s shares, listed under the ticker DLR, closed at $179.99 on November 13, 2026, according to EL7 data. The closing price is a market figure for that day; verified data on the stock’s intraday move or its response to the KIX15 announcement is not available here. These indicators provide context on the company and its performance, while the direct Japan development is the new Osaka center project.
In Japan, ING’s economic calendar on November 13 listed a third-quarter GDP growth estimate of 0.1% quarter over quarter, compared with a previous reading of 0.4%. Japan’s Cabinet Office is scheduled to release its preliminary estimate for July to September on November 16, 2026, at 8:50 a.m. Japan time. The release date and expected reading mark a near-term point for tracking economic activity in the country. The growth data are due as the market prepares for new economic results, while KIX15 is tied to an operating schedule extending to the fourth quarter of 2028.