Singapore's CapitaLand to Invest $1.15 Billion in Indian Data Centres Over Next 3-4 Years.

Singapore-based CapitaLand Investment (CLI) has announced plans to invest approximately $1.15 billion in developing data centres in India, aiming to achieve a total capacity of 244 megawatts (MW) over the next three to four years. This investment is part of a broader strategy to double CLI's overall investments in India by 2028.

As of the end of June, CLI managed $5.7 billion in India, with a goal to double this amount within the next four years. The company plans to allocate funds to various sectors, including business and IT parks, logistics and warehouses, data centres, and lodging, while also exploring opportunities in renewables and real estate private credit. Growth will be driven by CapitaLand India Trust, a property trust listed in Singapore.

Significant portions of the investment will be directed toward data centres, reflecting their capital-intensive nature. CLI entered the data centre market in India in 2021 and is currently developing facilities in Mumbai, Chennai, Hyderabad, and Bengaluru. The first centres in Navi Mumbai and Hyderabad are expected to commence operations next year. Sanjeev Dasgupta, CEO of CapitaLand Investment, India, noted, “We can scale up this business even further.” CLI also plans to establish a data centre fund and seek funding from third-party investors.

In addition to data centres, CLI has developed over 23 million square feet of IT park space across 14 sites and holds a land bank of 16 million square feet for premium office spaces. The company intends to raise third-party capital through new private funds for greenfield developments and explore joint ventures with capital partners.

CLI’s logistics portfolio includes around 10 million square feet, with an additional 14 million square feet under development. The company is also looking for acquisition opportunities to accelerate growth in this sector.

Furthermore, CLI is closely monitoring the real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) markets in India, areas where it could leverage its experience as a pioneer in REIT development in Singapore.

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