AirTrunk TOK1, Phase 1 Data Centres
Australia

Project Overview

AirTrunk TOK1, is the development of a hyperscale data centre campus in Tokyo Japan. TOK1 is a progressive development of data centres with a total of seven independent data centres with a capacity in excess of 300MW. The Phase 1 development consists of the construction and fitout of two buildings (data centres B and C).
TOK1 will be AirTrunk’s largest development in the APAC region (excluding China), located in the lnzai-Tokyo data centre hub. AirTrunk secured a long-term lease agreement with an anchor tenant, which enabled the commencement of the project. In 2020, AirTrunk engaged a construction contractor and a facilities contractor to oversee all aspects of the development including the design, procurement, statutory of TOK 1 approvals, equipment installation, construction and fit-out works. Initiating construction of TOK1 was made all the more challenging given the emergence of COVID-19 at the same time.

 

TBH’s Role

The Lenders who were considering financing the project were unfamiliar with the method of constructing a new data centre in Japan. The Lenders appreciated TBH’s independent advice to identify and potentially mitigate the risks associated with the project and to also validate the time and cost estimates proposed to determine if there were any critical concerns about the project. The Lenders had previously engaged TBH to provide unbiased advice on their data centre developments in Australia, Hong Kong and Singapore and sought its independent advice on this project. TBH worked closely with AirTrunk to provide an independent preliminary assessment (Letter of Opinion). Having confirmed there were no “showstopper” risks, TBH developed a detailed Lenders Technical Advisory (LTA) report to provide the Lenders with a clear understanding of the risks involved. Given the logistics challenges of COVID-19, TBH partnered with a local firm to complete this engagement. This arrangement enabled the report to be completed on time and also enabled the benefit of the Japanese partners’ local knowledge.

TBH developed the independent assessment report on the proposed project, the review conducted covers the following key elements:

  • Site parameters and conditions
  • Experience and capabilities of the key project participants
  • Proposed project budget, including benchmarking
  • Proposed construction programme
  • Contract documentation

 

The TBH Difference 

TBH carried out these reports by reviewing the project documentation, including the preliminary programmes, cost plans, construction methodology and statutory approval register to identify any potential risks and strategies to mitigate risk, at the early stage of the project. TBH also conducted multiple site visits to gain high level understanding of the site conditions and current progress. TBH applied its depth of experience in acting as the LTA to provide clear, concise reports and advice to facilitate the onboarding of debt providers. In addition, TBH provided AirTrunk with progressive feedback on key risks and issues, accompanied with recommendations to address them, to ensure the successful delivery of the project. TBH also provided ongoing independent certification services on behalf of the Lenders to monitor debt drawdown against site progress.

To find out more about TBH’s Independent Technical Advisory experience, please visit the Independent Technical Advisory page.

Project Overview

Client AirTrunk
Services Lenders’ Technical Advisory
Value Confidential
Duration 2020
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