The “new data center business” that we are developing throughout Japan differs significantly from the conventional data center business. Despite the low initial investment cost, they are highly profitable and can contribute to another pillar of our clients’ business revenue.
Conventional data centers generally have a revenue model in which they provide processing capacity to customers and charge usage fees based on the amount of processing. In contrast, the new type of data center we propose provides customers with servers that can perform the most profitable processing at the time, and we take care of the servers for them. This allows customers to pay high usage fees immediately after purchasing the servers.
Image of new data center business model
In the above model, customers have the advantage of being able to depreciate their servers, unlike traditional data centers. In addition, they can use our servers to perform the most appropriate processing at the time and get the usage fee without any headaches. The following are recent candidates for the processing to be performed.
Example of processing performed on a server
In addition, property owners can enjoy three major benefits from attracting data centers to their properties.
1.Utilization of non-income-producing properties owned by clients
Clients with non-revenue-generating properties can transform them into highly profitable properties as data centers. In particular, it is said that in recent years, amusement centers and other such properties have been experiencing declining revenues, making these properties very suitable for data center use. In most cases, it is possible to convert the property into a data center with inexpensive initial costs.
2.Increase real estate value and receive revenue beyond rental income
Once converted to a datacenter, the owner will receive a monthly datacenter usage fee. In many cases, its performance generally outperforms the existing industry, and has the potential to make the owner’s property more profitable than it is now. The expected increase in property value will make it easier to sell the property, making it a viable option for owners who are considering exiting.
3.Reduction of operating costs to attract customers
Normally, commercial use of a property requires a great deal of work. Particularly difficult is attracting customers. In this respect, the data center business does not need to think about attracting customers. It can be a good choice for properties that are generally disadvantageous for monetization, such as those located far from train stations, in sparsely populated areas, or where natural conditions, such as snowfall, can change the number of customers.
Our data center property (Toyama Branch)
Thus, the new data center business will be of great benefit to customers who wish to convert their real estate properties at a lower initial cost and to owners of non-income-generating properties.