CapitaLand India Data Centre Fund raises S$150 million, to buy 20.2% in three assets for S$99.7 million

CapitaLand Investment Limited (CLI) has raised approximately S$150 million in equity at the first close of its CapitaLand India Data Centre Fund (CIDCF), marking a significant step in scaling its data centre platform in India. The development-focused fund will acquire a 20.2% interest in three data centre projects from CapitaLand India Trust (CLINT) for an estimated S$99.73 million (Rs 702 crore).

The first close was anchored by a third-party global institutional investor, alongside a general partner commitment from CLI. The fund is targeting a final close of around S$300 million, indicating room for additional capital as India’s data centre demand accelerates.

With the first close, CIDCF will buy minority stakes in data centre projects located in Navi Mumbai, Chennai and Hyderabad. The assets are being developed by CapitaLand India Trust (CLINT)

and are positioned within India’s established data centre corridors, where power availability and network connectivity are key constraints for new supply. CIDCF will also have a right of first offer to acquire an interest in CLINT’s fourth data centre asset in Bengaluru.

The three projects are designed to be AI-ready and incorporate sustainable design features to cater to hyperscalers and large enterprises. Power has already been secured for all the developments, which together will have a combined gross capacity of about 200 megawatts.

In Navi Mumbai’s Airoli, CapitaLand DC Mumbai comprises two towers, with Tower 1 completed and Tower 2 under development. Tower 1 has an IT capacity of 34 MW and gross capacity of 50 MW, while Tower 2 will add 37 MW of IT capacity with a gross capacity of 55 MW. The Chennai project in Ambattur is under development with an IT capacity of 34 MW and gross capacity of 53 MW, while the Hyderabad data centre in Madhapur will offer 27 MW of IT capacity and 42 MW of gross capacity.

Andrew Lim, group chief operating officer of 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.”

Hardik Gesota, managing director and head of India private funds at CLI, said the portfolio was well placed to meet rising demand. “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,” he said.

The transaction values the three data centres at an enterprise value of Rs 51.97 billion as of December 31, 2025, with the purchase consideration reflecting 20.2% of this value. The enterprise value is at a premium to the independent valuation of Rs 45.70 billion, and will be adjusted for liabilities, working capital and capital expenditure post completion.

For CLINT, the divestment forms part of its broader strategy to recycle capital and strengthen its balance sheet. In September 2025, the trust had divested CyberVale in Chennai and CyberPearl in Hyderabad, marking its first asset sale since listing in 2007.

Gauri Shankar Nagabhushanam, chief executive officer of CapitaLand India Trust Management, said: “The partial divestment reflects continued execution of our portfolio reconstitution strategy. By unlocking value earlier in the development cycle, while retaining a significant stake in the assets, we are able to support our development pipeline and enhance financial flexibility.”

CLI currently manages a diversified real estate portfolio in India across eight cities, with assets under management of about S$8.4 billion, spanning offices, logistics, data centres, lodging and coworking.