CapitaLand Investment (CLI) plans to invest 1.15 billion USD in India's data centers, aiming for a 244 MW capacity over 3-4 years. The Singapore-based company targets doubling its funds under management (FUM) in India to 7.4 billion USD by 2028. Investments will focus on business parks, IT parks, logistics, and warehouses, while also exploring renewables and real estate private credit. CLI operates across major Indian cities and is developing four data centers. The company's strategic growth includes raising third-party capital, joint ventures, and expanding its lodging portfolio. India remains a key market, with significant potential for future growth.
CapitaLand Investment (CLI), a Singapore-based real asset manager, plans to invest 1.15 billion USD in India's data center sector over the next three to four years. This investment aims to increase its capacity to 244 MW, forming part of the company's broader strategy to double its overall investments in India by 2028. As of June 2024, CLI managed 5.7 billion USD in funds in India and plans to grow this figure by focusing on key sectors such as business and IT parks, logistics, warehouses, data centers, and lodging. Additionally, CLI is exploring opportunities in renewable energy and real estate private credit.
The company's growth in India will be largely driven by CapitaLand India Trust (CLINT), listed in Singapore, which will support capital allocation to assets with strong return profiles. CLI first entered India's data center market in 2021 and is currently developing four data centers in Mumbai, Chennai, Hyderabad, and Bengaluru. The first centers in Navi Mumbai and Hyderabad are expected to begin operations in 2024. Sanjeev Dasgupta, CEO of CLI India, expressed optimism about further scaling the business and mentioned plans to launch a data center fund to attract third-party investment.
In the IT park segment, CLI has developed over 23 million square feet across 14 sites and possesses a land bank of 16 million square feet, which it plans to use for premium office spaces. The company intends to raise third-party capital through private funds for greenfield developments and is open to joint ventures with capital partners to expand its presence.
CLI's portfolio in the logistics and industrial sectors currently includes around 10 million square feet, with an additional 14 million square feet under development. The company is exploring acquisition opportunities to accelerate growth in this space and currently manages 16 logistics and industrial assets in India. CLI is also keeping a close eye on real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) in India, where it has previously been a pioneer in Singapore. The company plans to seed new private funds in logistics, utilizing its established platform, Ascendas-First Space (AFS), to drive growth.
CLI has a well-diversified portfolio in India, spanning business parks, industrial assets, logistics, and data centers. The company remains committed to its long-term goal of expanding investments and contributing to India's economic growth.
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