Global real asset manager CapitaLand Investment Ltd has successfully secured an initial equity commitment of approximately S$150 million (about $117 million) for its newly launched CapitaLand India Data Centre Fund (CIDCF). This significant first close marks a major step in the company's strategy to expand its footprint in India's rapidly growing data centre market.
Strategic Acquisition and Fund Details
The announcement was made by the company in a statement on Wednesday. The first close of the fund was anchored by a third-party global institutional investor, with additional commitment from CapitaLand Investment as the general partner. The fund has set its sights on a final close target of around S$300 million ($234 million).
Following this initial capital raise, CIDCF will immediately deploy capital to acquire a 20.2% stake in three operational and developmental data centre assets from CapitaLand India Trust. The transaction is valued at S$99.73 million ($78 million or roughly ₹702 crore).
Portfolio Exposure in Key Indian Hubs
This strategic acquisition provides the fund with direct exposure to three large-scale data centre projects located in India's most critical IT corridors: Mumbai, Chennai, and Hyderabad. All three assets have secured power and together boast a combined gross power capacity of 200 megawatts (MW).
Andrew Lim, Group Chief Operating Officer at CapitaLand Investment, stated, "The successful first close underscores investor support for our data centre strategy in India."
Breakdown of the Data Centre Assets
The fund's portfolio includes:
- CapitaLand DC Mumbai (Airoli, Navi Mumbai): Tower 1 is fully operational with 34MW IT capacity (50MW gross). Tower 2 is under development and will add 37MW IT load (55MW gross).
- CapitaLand DC Chennai (Ambattur): Currently under development, this facility will offer 34MW of IT capacity and 53MW of gross power capacity.
- CapitaLand DC Hyderabad (Madhapur): Also under development, this project will feature 27MW IT capacity and 42MW gross capacity.
Additionally, CIDCF has secured a right of first offer to acquire an interest in a fourth asset, CapitaLand DC Bengaluru, held by CapitaLand India Trust.
Riding the Indian Data Centre Boom
The move capitalizes on an explosive growth phase for India's digital infrastructure. A Macquarie Equity Research report from October highlighted that the country's data centre capacity is expected to double by 2027. This surge is driven by massive cloud adoption, stringent data localization laws, and the increasing computational demands of artificial intelligence (AI) workloads.
Hardik Gesota, Managing Director and Head of India Private Funds at CapitaLand Investment, emphasized the portfolio's strength, noting, "CIDCF’s portfolio is located within established data centre corridors with access to power and network connectivity." The data centres are specifically designed to meet the needs of hyperscalers and large enterprise customers.
CapitaLand Investment is a significant player in the Indian real assets landscape, managing approximately S$8.4 billion ($6.55 billion) in assets across business parks, logistics, data centres, lodging, and coworking spaces. The firm operates in eight Indian cities, managing 38 properties with a total gross floor area of about 39 million square feet.
