CapitaLand Invests $1 Billion in India’s Data Centre Market, Aiming to Double Capacity by 2030

India’s data centre market is transitioning from promise to performance, and CapitaLand Investment is positioning itself at the forefront of this transformation. The Singapore-based real estate and infrastructure major is expanding its India data centre footprint with a commitment of approximately $1 billion, aiming to double its capacity to nearly 500 MW by the end of the decade. This strategic move highlights India’s rapid growth as a digital infrastructure hub.

The company began acquiring land in mid-2021 during the COVID-19 period and started development in 2022. The current expansion pipeline, valued at about $1 billion, is progressing in phases and is expected to be completed by 2027. According to Surajit Chatterjee, Managing Director and Head of Data Centre, India, CapitaLand Investment, the company aims to almost double its footprint to nearly 500 MW by 2028-2030.

Chatterjee stated that out of the upcoming capacity, 175–200 MW will be in Mumbai, and 50–75 MW will be 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, often requiring 100 MW or more at short notice, are driving significant infrastructure investments. Chatterjee noted that demand has increased by 10–15 percent quarter-on-quarter (QoQ) in both hyperscaler and enterprise segments. Approximately 70 percent of the company’s revenue in India comes from hyperscalers, while 30 percent comes from large enterprises.

Chatterjee added 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 explained.

CapitaLand is not looking for 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,” Chatterjee said.

India is emerging as Asia’s most cost-efficient data hub. 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,” Chatterjee said.

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 added 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 noted.

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 added.

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. Chatterjee said that 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.