CapitaLand raises S$150 million at first close of India data centre fund
Global real asset manager CapitaLand Investment Ltd has raised approximately S$150 million ($117 million) in equity capital in the first close of its CapitaLand India Data Center Fund (CIDCF), accelerating its focus on data center development opportunities in the country.
The initial closing was driven by a general partner commitment from CapitaLand Investment, as well as a third-party global institutional investor, the company said in a statement on Wednesday.
The fund is targeting a final close of around S$300 million ($234 million).
Following the initial close, CIDCF acquired a 20.2% stake in three data center assets from CapitaLand India Trust for S$99.73 million ($78 million) or approximately ₹702 crore.
This acquisition will give the fund access to three large-scale data center projects in Mumbai, Chennai and Hyderabad. The assets are either operational or under development and have a total gross power capacity of 200 megawatts (MW). The company said electricity was secured for all three projects.
data center boom
India’s data center capacity is expected to double by 2027 due to cloud adoption, data localization requirements and growth of AI-led workloads, according to a Macquarie Equity Research report in October.
“The successful first close underscores investor support for our data center strategy in India,” said Andrew Lim, group chief operating officer of CapitaLand Investment.
The fund will invest in Airoli in Mumbai and CapitaLand DC Mumbai in Navi Mumbai. Tower 1 was completed with an IT capacity of 34 MW and a gross capacity of 50 MW. Tower 2 is under development and is expected to add 37 MW of IT load and 55 MW of gross capacity.
The second asset is CapitaLand DC Chennai located in Ambattur. The data center is under development and will have an IT capacity of 34 MW and a gross power capacity of 53 MW.
The third project is CapitaLand DC Hyderabad in Madhapur. It is also under development and will have an IT capacity of 27 MW and a gross capacity of 42 MW.
The fund will also have the right of first offer to acquire a stake in CapitaLand India Trust’s fourth data center asset, CapitaLand DC Bengaluru.
“CIDCF’s portfolio is located in established data center corridors with access to power and network connectivity,” said Hardik Gesota, managing director of CapitaLand Investment and head of India Private Funds.
CapitaLand said the three data centers were built to support hyperscalers and large enterprise customers.
CapitaLand Investment manages approximately S$8.4 billion ($6.55 billion) in assets in India, covering business parks, logistics, data centres, hospitality and co-working spaces. The company operates across eight cities in India and manages 38 assets with a total gross area of approximately 39 million square metres.
