CapitaLand India Data Centre Fund to acquire 20.2% interest in three data centres for S$99.73 million

CapitaLand Investment Limited (CLI) has completed the first close of its CapitaLand India Data Centre Fund (CIDCF), raising approximately S$150 million in equity to invest in data centre development opportunities across India’s key digital infrastructure corridors.

According to CLI, the fund’s first close was anchored by a third-party global institutional investor, alongside a general partner commitment from CLI. CIDCF is targeting a final close of around S$300 million.

Following the first close, the fund will acquire a 20.2% interest in each of three data centre assets from CapitaLand India Trust (CLINT) for an estimated total consideration of S$99.73 million (approximately ₹702 crore). CIDCF will also hold a right of first offer to acquire an interest in CLINT’s fourth data centre asset in Bengaluru, CapitaLand DC Bangalore.

Focus on AI-ready data centre infrastructure

The three data centres involved in the transaction are being developed with what CLI describes as AI-ready design features and sustainability considerations, aimed at meeting the requirements of hyperscalers and large enterprise customers. Power has been secured for all three developments, which will collectively offer a gross capacity of 200 megawatts (MW).

The assets include CapitaLand DC Mumbai Tower 1 and Tower 2 in Airoli, Navi Mumbai—where Tower 1 is operational and Tower 2 is under development—as well as new data centre developments in Ambattur, Chennai, and Madhapur, Hyderabad. Once completed, the facilities are expected to serve growing demand from cloud providers and enterprise customers operating in India’s major data centre hubs.

India positioned as a key growth market

Commenting on the fund’s first close, Andrew Lim, Group Chief Operating Officer for CLI, said, “The successful first close and investor’s support in CIDCF underscore CLI’s investment and development strategies to shape India’s dynamic data centre landscape. India has emerged as a hotspot for data centre investment, driven by cloud adoption, data localisation and the rapid growth of AI-led workloads. The country’s data centre capacity is expected to double by 2027. With three prime assets currently under development and power secured, CIDCF offers an attractive prospect for private capital to participate in this growth opportunity.”

CLI’s India private funds team said the fund’s portfolio has been structured to align with established data centre corridors that offer access to power and network connectivity—two of the most critical constraints in large-scale data centre development.

Hardik Gesota, Managing Director and Head, India Private Funds, CLI, said, “CIDCF’s portfolio is strategically located within India’s established data centre corridors with access to power and network connectivity. It is poised to meet growing demand from hyperscalers and enterprise customers. CLI has gained deep experience operating in India for over 30 years. Tapping our global data centre operating excellence, we are also well-positioned to meet market demand for cutting-edge, secure and sustainable data infrastructure. With CLI’s combined real estate, investment and data centre expertise, we remain confident in delivering attractive and long-term value for stakeholders.”

Broader India footprint

CLI has been operating in India for over three decades and maintains a diversified real estate portfolio spanning business parks, logistics and industrial facilities, data centres, lodging and coworking assets. As of November 2025, the firm managed approximately S$8.4 billion in funds under management in India.

Its Indian portfolio spans eight cities—Bengaluru, Chennai, Hyderabad, Mumbai, Pune, Gurgaon, Kolkata and Goa—and includes 38 assets with a total gross floor area of around 39 million square feet. This includes approximately 27 million square feet of Grade A office space and more than 12 million square feet of logistics assets.

Data centres at the intersection of AI and infrastructure

The launch of CIDCF comes at a time when India’s data centre sector is seeing increased attention from global investors, driven by a combination of cloud adoption, data localisation requirements and the rise of AI-driven workloads. Industry estimates suggest that the country’s data centre capacity could double over the next few years, intensifying competition for power, land and network connectivity.

Against this backdrop, development-focused funds such as CIDCF are positioning themselves to participate in the next phase of India’s digital infrastructure build-out, where scale, power availability and execution capability are becoming decisive factors.