ESR Group, Asia’s largest real estate fund manager by asset under management, has set up a joint venture with U.S. data center operator CloudHQ to co-develop a $2 billion data center in Japan.

The two corporations will build, equip and jointly operate the Nanko Kita Knowledge Middle in Osaka, they said in a set on Thursday. The allocation will provide 130 megawatts (MW) of average knowledge capacity in 3 phases, the first is in a position for implementation in June.

“This partnership highlights the unique competitive merit of the Multimodel Data Center platform through ESR by providing overall flexibility to meet our customers’ desires,” said Stuart Gibson, co-founder and co-PDG D’Esr, in the press release.

Japan is one of several Asian countries seeing an influx of real estate managers, private equity corporations, and generation giants to capitalize on the floor of knowledge centers amid the rise of “artificial intelligence. “Last year, Microsoft said it would invest $2. 9 billion to develop more cloud computing and AI infrastructure in Japan, its largest investment in the country. It followed Amazon Web Services’ $15 billion investment to expand cloud computing infrastructure in Japan through 2027.

Other companies doubling down on their data centers in Japan include Gaw Capital Partners, the Hong Kong-based private real estate equity firm controlled by the billionaire Gaw family. Last year, Gaw Capital Partners doubled the total life of its data center at Japanese company Fuchu Intelligent Pak following an acquisition for an undisclosed sum.

The ESR project in Osaka is one of four data centers under development in Japan. Others include a 100 MW data center in Kyoto, as well as a 60 MW and 30 MW project in Tokyo.

ESR said it’s the largest real estate investment manager in Asia, with an AUM of $154 billion as of June last year. In December, the Hong Kong-listed firm said it had received a $7 billion take-private offer from a consortium that includes U.S. private equity giants Starwood Capital Group and Warburg Pincus.