Singapore-based CapitaLand Group eyes podium finish in data centre race

Earmarks nearly $1 billion to build three new data centres in India over the next three to four years

Singapore-based CapitaLand Group has earmarked nearly $1 billion to build three new data centres in India over the next three to four years, aiming to secure a position among the top three players by 2027–28 (FY28) with a total operational capacity of 500 megawatt (Mw). 

Surajit Chatterjee, managing director (MD) of data centres at CapitaLand Investment (India), told Business Standard in an exclusive interaction that, including its first 110 Mw centre in Mumbai which is already live, three more facilities will come up, taking its total data centre footprint to 245 Mw. 

The second centre — a 40 Mw facility under construction in Hyderabad — is expected to go live by the end of the year, in the fourth quarter. Two more are in the pipeline: a 54 Mw centre in Chennai by the second or third quarter of 2026, and a 40–45 Mw centre in Bengaluru, which is scheduled to be operational by early 2027. 

“We are looking to invest close to SGD 1–1.15 billion (₹7,700 crore) over the next three to four years in India, and that will be spread across various markets depending on the capacities we’re building,” Chatterjee said. 

CapitaLand is also exploring opportunities in Kolkata, an emerging market with strong growth potential despite its current smaller size. Chatterjee said that the likely implementation of a cable landing station in Kolkata by FY28 would benefit from incentives offered by the state to attract investors. The strategic push for a top-tier position is being driven by the build-to-suit segment catering to hyperscale clients such as Amazon, Microsoft, and Google, who currently account for 70 per cent of India’s 1.2 gigawatt (Gw) data centre market. The remaining 30 per cent comes from enterprise clients, particularly in banking, financial services, and e-commerce. 

While total demand in India is expected to rise to 1.6 Gw, Chatterjee said the market has the potential to grow to 2 Gw in the coming years. Within that, artificial intelligence-enabled data centres for hyperscalers will emerge as a high-demand sub-segment, requiring unique configurations in terms of core and shell, and floor loading. CapitaLand intends to capture a larger share of this market, where global majors like Japan’s NTT, Singapore’s ST Telemedia, and Indian firms such as Airtel’s Nxtra, CtrlS, Sify Technologies, and NTT-Netmagic already have a strong presence. 

With states actively rolling out data centre policies, especially after the sector was granted infras-tructure status in the 2022 Union Budget, new corridors like Hyderabad and Kolkata are emerging. These are expected to foster edge data centres with smaller capacities catering to medium and small enterprises, while hyperscalers are likely to remain concentrated in Tier-I cities. 

Renewable energy is another critical focus area for CapitaLand, driven by mandates from hyperscalers to include green capacity. The company has already invested in a 25 Mw solar power plant in Chennai to support its operations and has plans for additional renewable infrastructure. Chatterjee added that the company is also actively engaging with the government through industry bodies like the Confederation of Indian Industry and Assocham to advocate for a manageable private data-holding policy, underscoring India’s infrastructure readiness to host data locally.

 

India’s rapidly growing data centre landscape, however, comes with its own set of challenges, chiefly stemming from intense competition and the fast pace of technological change. Building a data centre typically takes around 30 months, by which time new technologies often emerge, demanding flexible, innovative design. To stay ahead, CapitaLand is implementing advanced technologies. For instance, it is deploying liquid cooling at scale — an advanced method that uses gas and is crucial for managing high rack densities of 82–120 kilowatt (kW), far beyond the 8–20 kW supported by traditional air cooling.  “The implementation is phased, allowing for collaborative learning and problem-solving with partners and clients throughout the process,” he said.