IR Meetings

Data Center Business presentation in Canada (Toronto)

Date March 25, 2024
Location Data center in Canada (Toronto)
Contents Data center facility tour, presentation, and Q & A session
Participants Investors and analysts
  • KDDI Canada, Inc.
    President & CEO Satoshi Adachi,
    EVP & COO Atsushi Kubo,
    Facilities Department Manager/Special Advisor Doug, Director Mark

Data Center Business Description

At KDDI Group, we are expanding our data center business globally, focusing on high-quality connectivity data centers that make it easy for our customers, such as content providers, cloud service providers, and telecommunications companies, to interconnect.
We established "KDDI Canada, Inc." in June 2023, which took over the data center business from Allied Properties REIT in Canada, and our operation has begun in September 2023. By incorporating the connectivity No.1 data center business in Canada, we aim to expand our business across Europe, Asia, and North America, forming a trilateral expansion strategy.

<Data Centers in Canada>

<151 Front Street West>

<250 Front Street West>

<905 King Street West>


Open link in a new windowNotice Regarding the Establishment of a New Subsidiary in Canada

Data Center Facility Tour

Participants visited one of the three data centers in Toronto, "151 Front Street West," which boasts the highest number of interconnections in Canada. While listening to the commentary of CEO Adachi, COO Kubo, Facilities Department Manager/Special Advisor Doug, and Director Mark, visitors have learned that it was a historic site where the first telegraph was sent in Canada. They have also seen our environmentally conscious air conditioning system, in which, through a partnership with Enwave, we prioritize the use of natural cooling using cold Lake Ontario water, and by using air conditioning equipment (such as chillers) as a backup, we are able to significantly reduce power consumption during normal operation.

<A bundle of yellow cables represents connectivity (connections)>

<Space for installing connectivity>

<Cooling device>

Main Q&As

  • QHow many connectivity data centers are there in North America?

    While precise data is not available, it is considered that the data centers with 60 plus interconnections are connectivity data centers, which are operated in locations such as Los Angeles and San Francisco.
    Among them, our data centers have strong advantages as they already host not only the three major carriers in Canada and numerous European and American carriers and internet service providers, but also host companies that contribute to the appeal of connectivity data centers, such as AWS and Microsoft. In terms of the number of connectivity (network service providers), our presence is dominant within Canada and is also the top tier in North America including United States being able to access nearly 300.

  • QHow many throughputs are there in data centers in Toronto.

    It is hard to estimate in terms of bandwidth since this information is closed in housed business operators. However, it can be inferred that a majority of domestic internet traffic flows through this data center's ecosystem based on the database as well as the population of Toronto.

  • QHow long is the contract period with the client companies?

    The contract period is either 5 or 10 years. One advantage of the connectivity data center is its lower churn rate compared to data centers designed for hyperscalers because of its structure of the interconnected nature of the operators.

  • QWhat are the differences between connectivity data centers and hyperscaler data centers in terms of locations and number of clients.

    Hyperscaler data centers are often located in suburban areas due to their large scale. These centers primarily serve in-house use purposes, resulting in a small number of client occupants. On the other hand, connectivity data centers are frequently situated in urban areas, accommodating a larger number of client occupants due to their interconnected nature. Furthermore, it is expected that the number of connections will increase not only due to the growth in data traffic from video demand, but also due to the increasing number of related businesses.

  • QWhat are the plans for capacity expansion supposing further market expansion and increase of demand are expected?

    Expanding capacity will require not only technology but also advancements in cooling systems. As the servers belong to our clients, capacity expansion also involves clients upgrading their equipment. We will consider the capacity expansion in line with our clients' needs.

  • QHow do you see the value of data centers in Canada? Are the profitability and the valuation both reasonable?

    EBITDA margin exceeds 50%, and the estimated EBITDA multiple is lower than the said to be level of about 30 times of data centers.

<Comments from participants>

  • The data center tour was beyond my expectation.
  • The presentation by KDDI CEO Adachi was excellent. The speakers politely addressed the questions from the investors and engaged in discussions on various aspects of the data center.
  • Although I have been involved in IR activities across several sectors, including telecommunications, in long years, this was the best site visit tour I have ever participated in.

We have received many comments indicating a deeper understanding.


Download PDF fileKDDI Canada Overview

IR Meeting (February 6, 2024)

Date February 6, 2024 (Tue), 18:30-19:00 PM
Location Online streaming
Description of presentation Q&A Session on "Mitsubishi Corporation, KDDI CORPORATION, Lawson, Inc. have entered into the Capital Business Partnership Agreement"
Participants Investors and Analysts
Panelists Toshitake Amamiya, Executive Vice President, Representative Director, Executive Director, Personal Business Sector
Hiroshi Takezawa, Managing Executive Officer, Executive Director, Marketing Division and Business & Services Development Division, Personal Business Sector
Managing Executive Officer, CFO, Executive Director, Corporate Sector

For presentation materials from the joint press conference held prior to this overview of the conference, please click bellow.
Download PDF filePresentation materials


For details, please refer to Open link in a new windowthe news release and Download PDF filethe timely disclosure (766KB).

1. Outline

On February 6, 2024, Mitsubishi Corporation (MC), KDDI CORPORATION (KDDI), and Lawson, Inc. (Lawson), announced that the companies signed a capital business partnership agreement to aim for creation of new consumer values by integrating "Real, Digital, and Green" elements. Accordingly, KDDI will commence a TOB for Lawson in April 2024 and expect to complete the transaction around September (planned). If the closing occurs as planned, KDDI's ownership ratio in Lawson will be 50.0% (currently 2.1%), Lawson will be delisted, and for accounting purposes will be treated as a jointly controlled company by KDDI and MC.
The expected tender offer price per share is 10,360 yen, for a total amount of approximately 497.1 billion yen.

2. Objectives and Aims

For nearly five years since the capital and business alliance concluded in December 2019, KDDI and Lawson have been working on coordination to make their stores and services more attractive and expand the Ponta economic sphere. KDDI has approximately 31 million mobile IDs and 2,200 stores, and Lawson has 14,600 convenience stores and 10 million visitors per day, the implementation of this project will enable us to establish one of the leading consumer contact points in Japan with a total of approximately 17,000 stores.
In addition, KDDI and Lawson each have a number of group assets, such as entertainment and finance, that can provide synergies, as well as many of our own assets, such as insurance, Energy Business, and satellite telecommunications, that can help enhance the functionality of the convenience store, thereby expanding business opportunities by contributing to the realization of the convenience store of the future.
The decision to support Lawson's growth strategy was based on the belief that supporting Lawson's growth strategy will lead to the strengthening of the infrastructure function of convenience stores, which in turn will enhance the corporate value of the two companies.

MC/KDDI/Lawson to Conclude a Capital and Business Alliance

3. Vision⋅Obtainable synergies

The companies will consider measures to enhance convenience store functions, improve the customer experience value combined with the latest technology, achieve greater efficiency in store operations, and achieve a green and sustainable consumer society. Specific measures will be discussed in depth after closing, but we will promote business coordination in the three business areas of Real, Digital, and Green, leveraging the assets and strengths of each company.

(Reference) Examples of coordination measures

  • Providing new services such as telecommunications, banking/insurance, and health care through online remote customer service to improve convenience at LAWSON stores.
  • Making LAWSON stores smarter and more advanced through the use of the latest technologies such as DX, XR, and remote delivery.
  • Converting LAWSON stores into disaster prevention and preparedness centers through the installation of solar power generation and EV charging spots, and the use of satellite telecommunications.

Creating Future Convenience Store

Q&A Session

In the Q&A session, the answers to questions from the participants were provided.

Questioner 1

Questioner 2

Questioner 3

Questioner 4

Questioner 5

Financial Business Meeting


Download PDF filePresentation

Financial Business Presentation Meeting

Date August 29, 2023 (Tue), 4:00-5:15 PM
Location Online streaming
Description of presentation KDDI's Financial Business
Participants Investors and Analysts
Panelists Toshitake Amamiya, Executive Vice President, Representative Director, Executive Director, Personal Business Sector
Hiroshi Takezawa, Managing Executive Officer, Executive Director, Marketing Division and Business & Services Development Division, Personal Business Sector
Tomohiko Katsuki, President, Representative Director, au Financial Holdings Corporation

Q&A Session

In the Q&A session, the panelists provided answers to questions from the participants.

Questioner 1

Questioner 2

Questioner 3

Questioner 4

Questioner 5

E-mail Alerts

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Open link in a new windowRegistration

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