NTT Global Data Centers, the world¡¯s third-largest data center provider outside of China, is working to double its capacity to 4 gigawatts to meet the rising global demand for the critical digital infrastructure amid an artificial intelligence boom.
The unit of Japan¡¯s NTT?is working on 34 projects that will double its capacity in as soon as two years, according to the data center business¡¯s Chief Executive Officer Doug Adams. Capacity will continue to increase from there, and will be ¡°well over 5 gigawatts¡± in five years, Adams said in an interview.
NTT GDC has seen increasing demand from companies moving more of their software and operations to the cloud as well as businesses hunting for extra capacity to run AI programs. The business¡¯s revenue is expected to keep growing at more than 20% a year, Adams said, declining to give a specific time period. Net sales for the business grew about 30% to $2.4 billion in the fiscal year ending March 2025.
¡°AI demand is expected to get stronger by the minute, and we¡¯re essentially an enabler,¡± Adams said.
Data centers that specialize in AI capacity are seeing a boom in investment. Meta Platforms said on Monday that it would spend as much as $27 billion in the next five years with Dutch data center company and ¡°neocloud¡± provider Nebius Group. NTT GDC said it doesn¡¯t break out revenue from companies that need cloud capacity for implementing AI versus more classic digitalization projects.
In Frankfurt, NTT GDC is buying up land and building new facilities, on top of its four existing data centers, adding close to 500 megawatts fresh capacity there. NTT GDC is also constructing new sites in locations such as Milan and Osaka as well as studying opportunities in the Nordics and South America.
¡°We have more than $3 billion from our own balance sheet to fund expansion,¡± Adams said, adding that the company could partner with other investors to finance the new developments or putting assets into a real estate investment trust to raise new funds. The company put some of its stabilized income-producing assets into NTT DC REIT and raised more than $770 million by listing it in Singapore last July.
The firm has secured contracts for more than 70% of the 34 ongoing projects, Adams said. NTT GDC, currently operating more than 150 data centers in over 20 countries, is the world¡¯s biggest data center provider by revenue after Equinix and Digital Realty Trust.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.