Ares Management Closes Inaugural US$2.4 Billion Data Center Development Fund in Japan NEW YORK—(BUSINESS WIRE)—Ares Management Corporation (NYSE: ARES), a leading global alternative investment manager, has announced the final close of Japan DC Partners I LP (“JDC I” or the “Fund”). This marks Ares' first dedicated investment vehicle for data center development in Japan. The Fund secured approximately US$2.4 billion (¥350 billion) in total equity commitments, positioning Ares as one of the largest data center investors in the country. This significant capital is intended to meet the rapidly growing demand for data centers in Japan's market. The demand for data centers in Japan has surged due to the increasing reliance on cloud computing, big data, and digital transformation across various industries. JDC I will focus on developing and acquiring Tier III-certified data centers, which are designed to ensure continuous availability and high levels of performance. These state-of-the-art facilities are crucial for supporting the digital infrastructure that powers modern businesses, from finance to healthcare and beyond. “Ares is committed to leveraging our expertise in real assets to deliver innovative solutions that address the evolving needs of our clients,” said Michael Arougheti, President of Ares Management. “We see tremendous potential in the Japanese data center market, and the successful close of JDC I underscores our confidence in this sector.” The fund's strategy aligns with global trends in digital infrastructure, where data centers play a pivotal role in ensuring uninterrupted access to data and applications. By investing in Tier III-certified facilities, JDC I aims to provide robust and reliable infrastructure that can support critical operations for businesses of all sizes. One of the key drivers of this surge in demand is the rise of remote work and digital services, which have been accelerated by the COVID-19 pandemic. Japanese companies are increasingly adopting cloud technologies to enhance their operational efficiency and resilience. This shift is not only driven by immediate needs but also by long-term strategic goals, such as expanding into new markets and improving customer experiences. The Japanese government has also played a significant role in fostering the growth of the data center industry. Policies aimed at promoting digitalization and reducing carbon footprints have created an environment conducive to investment. Ares plans to integrate sustainability practices into its data center developments, ensuring that these facilities are energy-efficient and environmentally responsible. “Japan’s commitment to digital transformation and sustainable practices provides a fertile ground for Ares' investments,” commented David Kirtley, Head of Real Assets at Ares Management. “Our focus on Tier III-certified data centers will help us meet the stringent reliability standards required by today’s businesses while aligning with broader environmental goals.” In addition to its financial muscle, Ares brings extensive experience in real estate and infrastructure development to the table. The company will collaborate with local partners and experts to navigate the unique challenges and opportunities of the Japanese market. This includes understanding regulatory requirements, local business dynamics, and consumer needs. The Fund is expected to attract further interest and investment from both domestic and international sources. Ares' track record in alternative investments and its strong presence in Asia will likely bolster its appeal. The company’s ability to combine financial acumen with operational expertise is a significant asset in a highly competitive and rapidly evolving sector. As the digital landscape continues to expand, the importance of data centers cannot be overstated. They serve as the backbone of the internet, facilitating data storage, processing, and distribution. Ares' entry into this market with JDC I represents a significant step forward in addressing the growing demands of a digitally-transformed economy. The successful launch of JDC I is a testament to Ares' strategic vision and market adaptability. It signifies an important milestone in the company’s expansion and its commitment to driving technological advancement and economic growth in Japan. With the closure of this inaugural fund, Ares is well-positioned to capitalize on future opportunities and continue its leadership in the data center investment space.