Publishing Date: May 12, 2022

Datacentres for better security

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PRESS RELEASE: CapitaLand is planning significant data centre expansion in India. It is looking at a significant build-out of its data centres and related infrastructure in major metro cities in India.

“We are looking to set up data centres in Mumbai, Hyderabad, Chennai, Bengaluru and Noida,” Surajit Chatterjee. Managing Director, CapitaLand Investment, Data Centre India Group.


“India is a digitally young country, and we are experiencing an increased consumption of data and internet bandwidth that is majorly driven by the increased use of smart devices, expanding reach of social media, and the way local enterprises have pivoted their business to Digital with a view to remain competitive.”

Over the last few years, investors have witnessed spectacular growth in India across the hyperscale, cloud market – often leasing data centre space to expand for physical infrastructure requirements. Data Centre service providers are also beginning to see new enterprise demand as companies progress toward multi-cloud architectures.

These dynamics have captured the interest of major investment funds and private equity firms seeking alternatives to traditional real estate assets. So setting up Data Centre business in India extends CapitaLand’s domain strength and capabilities.

It allows them to leverage the experience that they have acquired by Managing and Operating Data centres globally. In Hyderabad and Bangalore, CapitaLand is looking to set up its Data Centres inside its existing International Tech Parks, located in prime zones.

“We will be provisioning a chain of world-class hyperscale-designed facilities that would support and boost the local digital economy and transformation strategies of large enterprises across verticals,” said Chatterjee.

CapitaLand India will develop all these projects on its own to ensure control over the design and quality of the infrastructure.

We are here for the long haul, and we look forward to serving Indian enterprises by providing world-class data centre infrastructure stated Chatterjee. All the major states in India have begun to understand the importance of technology and the critical need for a robust digital backbone; they have started rolling out State wise Data Centre Policies to facilitate the setting up of DC infrastructures in their respective states.

The Central Government too has acknowledged this fact, and in the recent budget, it granted the sector ‘infrastructure status’. With this, the data centre industry will attract more investments, and it has set the path for a multi-fold growth trajectory.


Focus on Green Data Centre’s

As companies increasingly look towards achieving ‘net-zero’ emission targets, data centres are playing their part in enterprises looking to achieve these goals. Increasingly, global data centre players setting up bases in India aim to reduce their carbon footprint by looking at building data centres that provide sustainable energy alternatives and are entering renewable energy power contracts.

“Currently, India’s renewable energy capacity is around 100 90GW, and various estimates peg this to be around 30 per cent of the total installed power capacity. This provides tremendous scope for the development of green data centres,” explained Chatterjee.

According to reports, the data centre industry is expected to grow exponentially to reach 1,007 MW by 2023 from its existing capacity of 447 MW. States such as Maharashtra, Tamil Nadu, UP, and others are at the forefront of data centre locations.

Chatterjee states that, at CapitaLand, we place sustainability at the core of everything we do.

“We are committed to growing in a responsible manner, delivering long-term economic value, and contributing to the environmental and social well-being of our communities.”

It was also awarded Global 100 Most Sustainable Corporations in the World 2020 (Ranked #58).

In 2020, the group launched our 2030 Sustainability Master Plan with ambitious goals to build a resilient and resource-efficient portfolio, enable thriving and future-adaptive communities, and accelerate sustainability innovation and collaboration. The Master Plan is CapitaLand’s blueprint which outlines the ambitious goals we have set for ourselves for the next decade.

CapitaLand  is committed to working collaboratively with our stakeholders towards these common goals as we overcome the significant challenges of the coming decade and enhance our sustainability efforts.

“Through the power of collective action, we want to be part of a common purpose to create a sustainable future for all. The CapitaLand Sustainability X Challenge is one of our pathways in the Sustainability Master Plan under the theme: Accelerate Sustainability Innovation and Collaboration,” explains Chatterjee.


Road Ahead

Chatterjee believes that they have entered India at just the right time from a Data Centre business perspective. He further states that the group has done its due diligence and has chalked out a strategic roadmap for India.

Over the next few years, you will see substantial investment from the Group to fulfil its vision: To be a leading Data Centre Organisation in India that empowers customers through high-quality products and services, he points out.

Other factors that give CapitaLand India, DC Groups an edge over competition includes the fact that it is in the business for the long run. Data centre business is an extremely capital intensive one and payback periods are long and our advantage is that we are backed by a highly profitable group and have global expertise in (Data Centre) operational capabilities, opines Chatterjee.

Also, CapitaLand India’s greenfield state of the art data centres will be in prime locations across the states, with superior build quality with the right certifications and world-class customer experience for clients.

“We have a very Long term investment vision for growth. So, sustainability is at the core of everything we do,” says Chatterjee.


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