CapitaLand Invests $1 Billion in India’s Data Centre Expansion to 500 MW by 2030
CapitaLand Investment is set to double its data centre capacity in India from 245 MW to nearly 500 MW by 2030, with a significant focus on Mumbai and Hyderabad. The $1 billion investment underscores the growing importance of India in the global digital infrastructure landscape.
Data CentreCapitalandIndiaDigital InfrastructureReal EstateReal Estate MumbaiNov 10, 2025
The company began acquiring land in mid-2021, during the COVID-19 period, and effectively started development in 2022. The current expansion pipeline, worth about $1 billion, is progressing in phases and is expected to be completed by 2027. CapitaLand aims to almost double its footprint to nearly 500 MW by 2028-2030, according to Surajit Chatterjee, Managing Director and Head, Data Centre, India, CapitaLand Investment.
The market has become very mature, and the company now has three-to-five-year visibility that allows for efficient capital and deployment planning. Chatterjee said that out of the upcoming capacity, 175–200 MW would be in Mumbai and 50–75 MW in Hyderabad. CapitaLand is also evaluating new corridors in Navi Mumbai and Hyderabad for future development, currently in the due diligence and planning stages.
Riding the hyperscaler wave, India’s data economy is booming on the back of demand from global cloud service providers. These firms, which often require 100 MW or more at short notice, are driving a new scale of infrastructure investment. “We’ve seen demand increase by 10–15 percent quarter-on-quarter (QoQ) in both hyperscaler and enterprise segments,” said Chatterjee. Around 70 percent of the company’s revenue in India comes from hyperscalers and 30 percent from large enterprises.
Chatterjee said that CapitaLand is currently developing 245 MW across four sites and plans to add another 250 MW by 2028–2030, primarily in Mumbai and Hyderabad, the country’s fastest-growing markets. “Mumbai will happen first, followed by Hyderabad. We are building campus-style setups because hyperscalers today want multi-building complexes, not single towers,” he said.
CapitaLand is not looking for any joint ventures to fuel its expansion plans. “While several competitors have entered joint ventures — Brookfield with Digital Realty, Adani with H Connect, and Blackstone with Lumina— CapitaLand is steering clear of JVs. We do not need to do JVs. In every JV, one partner brings real estate and the other operations. CapitaLand has both capabilities in-house, which gives us speed and flexibility,” said Chatterjee.
India is emerging as Asia’s most cost-efficient data hub. Chatterjee said that before COVID-19, India’s total data centre capacity stood at about 350 MW. Today, it has jumped to 1.2 GW (Gigawatt), and by 2028, the industry capacity is projected to reach 3 GW, and by 2030, close to 5 GW. “India’s data centre market has huge potential, but it needs investment, policy support, and execution discipline. India has the fundamentals — young demographics, high data consumption, abundant land, and renewable energy availability. Original Equipment Manufacturers (OEMs) are manufacturing locally, which reduces import dependency. All of this makes India a strong data centre destination globally,” said Chatterjee.
India’s competitive advantage lies not just in scale but also in cost efficiency. “The cost of construction here is still low (as compared to other markets), around $6.1–6.2 million per MW, including land and power,” he pointed out. Chatterjee said that policy support, infrastructure readiness, and clear returns make India very investment friendly. “Nearly 90 percent of the private equity promised in the last 2-3 years has already been delivered,” he added. That, he added, is drawing long-term institutional capital and accelerating project deliveries across major hubs.
The data centre boom is already redrafting the economics of India’s real estate market. “Land prices have jumped by 40 percent in the last two to three years,” said Chatterjee. “The moment you say you’re building a data centre, the price goes up four times. Real estate margins that were earlier 12–18 percent are now around 25 percent,” he said. Developers like Lodha and Hiranandani are adapting quickly, offering not only land but also core-and-shell infrastructure built to operator specifications — adding a new revenue layer to their portfolios.
The coming decade could define India’s position in the global data infrastructure map. As hyperscalers expand and investors chase sustainable returns, the data centre industry is set to become a pillar of India’s digital economy — and a major real estate value driver.
Frequently Asked Questions
What is CapitaLand's plan for expanding its data centre capacity in India?
CapitaLand Investment plans to expand its data centre capacity from 245 MW to nearly 500 MW by 2030, with a significant focus on Mumbai and Hyderabad. The company is committing around $1 billion to this expansion.
Why is India becoming a major data centre destination?
India is becoming a major data centre destination due to its young demographics, high data consumption, abundant land, and renewable energy availability. The country also offers cost efficiency and policy support, making it attractive for global cloud service providers.
How is the data centre boom affecting real estate in India?
The data centre boom is significantly affecting real estate in India, with land prices jumping by 40 percent in the last two to three years. Real estate margins have increased from 12–18 percent to around 25 percent.
What is the current and projected data centre capacity in India?
Before COVID-19, India’s total data centre capacity stood at about 350 MW. Today, it has jumped to 1.2 GW, and by 2028, the industry capacity is projected to reach 3 GW, and by 2030, close to 5 GW.
Why is CapitaLand not entering joint ventures for its expansion plans?
CapitaLand is not entering joint ventures because it has both real estate and operations capabilities in-house, which provides speed and flexibility. The company believes this approach gives them an advantage over competitors who rely on joint ventures.
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