December 25, 2024.

NTT Data Corporation

NTT Data Corporation (hereinafter referred to as NTT Data) will start providing a service to optimize the value and capital efficiency of customers' Datacenter Assets on December 13, 2024. This service supports consulting for formulating and running policies for the utilization (retention) and disposal (carve-out) of customers' aging Datacenter as real estate assets.
Using the achievements and know-how in utilization and disposal cultivated through NTT Data's owned Datacenter, we will identify and verify the assets related to the Datacenter held by customers and formulate an asset optimization policy. In the execution phase, support will be provided in two areas: enhancing the value of the Datacenter through renovation and conversion1 or operational improvements for utilization, and asset lightening through asset sales and leasebacks for disposal. This will contribute to solving management issues, including improving customers' capital efficiency.
In addition to the support for building and operating IT infrastructure traditionally offered by NTT Data, the service system that includes the utilization and disposal of Datacenter as real estate assets is a first in the country. Through Datacenter transition-related business, starting with this service, we aim for cumulative sales of 30 billion yen by 2030. We will continue to work on further service expansion to support customers' medium- to long-term corporate value enhancement.

Background

In recent years, the requirements for Datacenters are rapidly changing due to increased electrical demand resulting from expanded use of generative AI, responses to evolving cooling technologies, and the need for Carbon Neutrality. A survey shows that 70% of enterprise Datacenters were completed before 2000, and it has become difficult for aging Datacenters to meet the current demands. Furthermore, from the perspective of improving capital efficiency, management needs to formulate an asset strategy considering the financial impact of Datacenters as real estate assets.
NTT Data Group is the world's third-largest Datacenter provider2, and NTT Data has been operating Datacenter that run various critical systems, including core systems for central government agencies, local governments, and financial institutions, for many years. In response to the aging of Datacenters owned by NTT Data, efforts have been made on how to utilize and dispose of them as real estate assets. By utilizing these achievements and know-how, support will be provided to solve the management issue of improving capital efficiency.

Service Overview

Starting from December 13, 2024, NTT Data will offer a Datacenter Asset Optimization Support Service to assist in formulating and running utilization and disposal policies for aging customer datacenters as real estate assets. This service features an approach that utilizes the know-how based on NTT Data's past operational achievements in the facility area (acquisition of datacenter land, construction, operation, sale/utilization) and consists of 'Asset Assessment,' which identifies the assets held by the customer and examines policies for optimization, and 'Utilization and Disposal of Datacenter Assets,' which supports execution based on the formulated policies.
Previously, consulting and construction support for system aspects such as datacenter relocation and cloud migration have been provided, but with the initiation of this new initiative, a comprehensive service will be offered, covering not only the construction and operation of IT infrastructure but also the utilization and disposal of datacenters as real estate assets. This will contribute to solving customer management issues such as improving capital efficiency. The company, which delves into consulting for the utilization and disposal of datacenters as real estate assets, will be the first in the domestic market among major datacenter operators.

Figure 1: Service Image

Features

Figure 2: Example of services during the execution phase of customer asset utilization (retention).

In the disposal (carve-out), asset sales and leasebacks will be implemented to aim for the company's asset-light transformation.

Figure 3: Examples of services in the execution phase of customer asset utilization (carve-out).

Future outlook.

As a support service, related to the transition of Datacenters, a cumulative sales target of 30 billion yen is set by 2030. Additionally, while progressively incorporating know-how as a Global Datacenter provider into the services, support will be provided for enhancing customer corporate value as well as contributing to the renewal and strengthening of aging infrastructure, which is a social issue.

Notes.

• Note 1: A method to enhance asset value by changing the use of the building.
• Note 2: Excludes Chinese operators, created by NTT from Structure Research 2023.5 Report.
• Note 3 NTT Data investigation.

• Product names, company names, and organization names in the article are trademarks or registered trademarks of each company.

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