CapitaLand India Trust (CLINT) has entered a notable agreement with a prominent global hyperscaler for the leasing of data centre facilities, marking a significant step in the development of CLINT's data centre projects.
According to CapitaLand, the partnership will likely involve pre-leasing around half of the total 250 megawatts (MW) of gross power capacity currently under development. This development is part of the company's strategic move to expand into critical infrastructure within India to support the country's growing digitalisation needs.
Gauri Shankar Nagabhushanam, Chief Executive Officer of the Trustee-Manager of CLINT, commented on the agreement, stating, "CLINT's decision to diversify into critical infrastructure such as data centres is validated by the strong interest shown by hyperscale and enterprise customers and positions us well to capitalise on India's burgeoning digitalisation needs and drive long-term value for our unitholders. We are on track to complete the development of our data centres in India, accelerate leasing momentum, and unlock value through divestments of partial stakes to strategic investors. With the support of our sponsor, CapitaLand Investment (CLI), we are well-poised to meet the fast-growing demand for data centre capacity in India."
Manohar Khiatani, Senior Executive Director of CapitaLand Investment and Chairman of the Trustee-Manager, highlighted India as a central market for CLI, saying, "India is a core market for CLI and we see strong growth potential across the asset classes that CLINT is active in, including data centres. This agreement with a leading hyperscaler is a milestone and demonstrates our ability to deliver world-class data centre solutions. It underscores our deep in-country expertise and strong vertically-integrated capabilities in acquiring greenfield land; designing, developing and completing construction on schedule; as well as leasing and operating data centres. Digitalisation is the global megatrend of our times and CLI has significantly expanded its data centre business and capabilities worldwide in the last few years. With our 27 data centres across the globe offering more than 800 MW in gross power on a completed basis, we are well-positioned to cater to the expansion needs of hyperscalers and enterprises."
The demand for data management solutions in India is rapidly increasing due to the growth of mobile and internet usage, coupled with the adoption of emerging technologies such as artificial intelligence and the Internet of Things. Khiatani noted, "India is seeing a surge in demand for data storage and processing given the significant scale and growth of mobile and internet users and businesses widely adopting technologies such as artificial intelligence and Internet of Things. The rapid pace of digital transformation, increased adoption of cloud computing and the need for data localisation will continue to drive demand for data centres. With 30 years of experience in India, strong technical capabilities and a global customer network, CLI is fully equipped to support CLINT's growth in India."
CLINT's ongoing projects include the development of four data centre facilities located in key urban areas such as Mumbai, Chennai, Hyderabad, and Bangalore. This expansion is aimed at enhancing CLINT's portfolio in India and providing high-quality, risk-adjusted returns to its unitholders.
