CapitaLand India Trust Dives into Data Center Market with Major Pre-Lease Agreement

CapitaLand India Trust (CLINT) is making waves in the Indian data center market with a significant pre-lease agreement, marking its entry into the third major city in the country. The trust, managed by CapitaLand Investment, has acquired a 4.01-acre freehold site in Ambattur, Chennai, for ₹83.28 crore to develop its third data center in India. The total estimated investment for the project is ₹1,940 crore (approximately Singapore dollar 328.8 million), which includes the acquisition cost and development expenses.



The data center, expected to be completed by the end of 2025, will have a power capacity of 55 megawatts (MW), hosting customers such as global technology giants, cloud service providers, and large domestic enterprise clients. The site is strategically located in a prime data center location, close to sea cable landing stations, reliable power supply, and has well-developed infrastructure.

Sanjeev Dasgupta, Chief Executive Officer of CLINT, expressed his excitement about the acquisition, stating, "With this latest acquisition, CLINT will have a presence in India's key data centre markets—Navi Mumbai, Hyderabad and Chennai—and we are also planning to develop a fourth data centre in Bengaluru. This will allow us to expand in the resilient and highly scalable data centre asset class, diversify our data centre portfolio geographically, and enable us to better serve our customers across the country."

CapitaLand's strong core competencies in data center design, development, and operations will enable it to seize opportunities in the Indian market and build its new economy portfolio globally. The company has seen rising investor interest in the digital infrastructure sector, particularly in India, where $14 billion has been invested in the data center sector in the last five years, with expectations to cross $20 billion by 2025.



Chennai is India's second largest data center co-location market with a current IT load capacity of 88 MW, accounting for approximately 12 per cent of India's total capacity. The acquisition site in Ambattur is in a prime data center location, close to sea cable landing stations, reliable power supply, and has a well-developed infrastructure. When fully developed, the data center will have the capacity to host approximately 4,900 racks and operate at an efficient power usage effectiveness (PUE) of approximately 1.45.

The acquisition and development of the data center in Chennai will increase CLINT's total portfolio size (inclusive of committed investment pipeline) by 1.7 per cent from approximately 25.3 million square feet to 25.7 million square feet. CLINT, formerly known as Ascendas India Trust (a-iTrust), was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) in August 2007 as the first Indian property trust in Asia. Its principal objective is to own income-producing real estate used primarily as business space in India.

CapitaLand's expansion into the Indian data center market aligns with its broader investment philosophy, focusing on long-term sustainable value, geographic diversification, leveraging strong competencies, and investing in high-growth sectors. The company's data center strategy is well-positioned to capitalize on the growing demand for IT solutions and data consumption in India, while also mitigating potential risks and challenges in the new market.

In conclusion, CapitaLand India Trust's major pre-lease agreement and acquisition of the Chennai site mark a significant step in its expansion into the Indian data center market. With a strong focus on long-term sustainable value and geographic diversification, CapitaLand is well-equipped to navigate the opportunities and challenges in this high-growth sector.