CtrlS Datacenters mulls IPO, eyes over Rs 9,000 crore investment in Chennai

Company scouts for fresh land in Chennai for bigger centre; mulls IPO

Asia's largest Rated-4 data centre operator, CtrlS Datacenters Ltd, is expecting an additional investment of Rs 5,000 crore in its datacentre park in Chennai in the next two to five years, taking its entire capacity to around 75 megawatts (MW). The company is also reportedly planning to go public.

 

The investment is in addition to Rs 4,000 crore already lined up for Data Centre 1 (DC1). The first phase of DC1 in Chennai was launched on Tuesday.

 

Moreover, the company is scouting for fresh land in the city for an even higher capacity project, making Chennai key to its $2 billion investment plans to increase capacity from 250 MW to over a gigawatt.

 

 

The company board is reportedly planning an initial public offering (IPO), which, if it happens, will make CtrlS one of the first players in this space to get listed in India.

 

DC1 may see a direct investment of approximately Rs 4,000 crore and an indirect investment of roughly Rs 5,000 crore. The initiative is set to create 500 direct jobs and 9,000 indirect jobs—fueling local economic growth and enhancing employment opportunities.

 

“We have two buildings here, DC1 and Data Centre 2 (DC2). Out of this, DC1 takes an investment of Rs 4,000 crore in three phases, and we have completed phase 1. This DC2 investment will be even bigger, upwards of Rs 5,000 crore, depending on the service offerings,” said Sridhar Pinnapureddy, chairman, CtrlS Datacenters.

 

“DC2 is a full-service building. We will be providing various vertically integrated services. With DC2 in place, our total capacity will reach 75 MW. It is a full-service data centre, and it will take two to five years for the investment to be a reality. We are looking at a bigger campus in Chennai only,” Pinnapureddy added. 

 

Strategically located in Ambattur Industrial Estate, the Chennai Datacenter Park is engineered to meet the highest global standards and will further strengthen India's position as a leading data hub in the region.

 

“I am delighted to inaugurate CtrlS’ Chennai Datacenter Park, a cutting-edge facility that strengthens Tamil Nadu’s position as a global tech hub. Our strategic advantages and progressive policies attract industry leaders like CtrlS. Congratulations to the CtrlS team on this achievement,” said Tamil Nadu Chief Minister M.K. Stalin.

 

This launch coincides with Chennai's rapidly growing status as a hub for technology and connectivity. The city's rise is backed by Tamil Nadu's strong industrial framework, reliable power supply, and superior global connectivity, all of which have drawn considerable digital investments.

 

According to industry estimates, the city’s datacentre capacity is expected to double by 2026, with ongoing projects set to add 2.6 million square feet (134 MW) by 2026 and an additional 2.5 million square feet (130 MW) planned for 2027–2028. As of June 2024, Chennai’s operational datacentre capacity stood at 108 MW.

 

Building on these strengths, the park features impressive attributes, including two datacentre buildings with a total IT load capacity of 72 MW and earthquake resistance up to 7.5 on the Richter Scale. The facility is also flood-resistant, situated 14 metres above sea level, with an additional 2.2 metres of campus elevation.

 

Pinnapureddy said the company is betting big on edge data centres and is planning to come up with 22 such centres.

 

Furthermore, as the facility reaches full capacity, it is projected to generate significant GST revenue, amounting to about Rs 200 crore directly and an additional Rs 3,000 crore indirectly each year. The state’s energy sector is also expected to benefit from an estimated power revenue of Rs 800 crore annually, reinforcing Tamil Nadu’s financial strength and commitment to sustainable industrial development.

 

Equipped with a 230kV dedicated gas-insulated substation (GIS) with a 120 MW capacity, the datacentre park ensures a reliable power supply. The nine-zone security system and carrier-neutral infrastructure with four fibre entry paths and direct, high-bandwidth links to cloud service providers underline CtrlS' commitment to providing top-notch data security and connectivity.