CapitaLand India Trust signs agreement with global hyperscaler

Author: Simon Rowley

CapitaLand India Trust (CLINT) has signed a long-term agreement with a leading global hyperscaler for one of CLINT’s data centres under development. With this, CLINT is likely to pre-lease about half of its total gross power capacity under development of around 250 MW.

Gauri Shankar Nagabhushanam, CEO of CapitaLand India Trust Management, says, “CLINT’s decision to diversify into critical infrastructure such as data centres is validated by the strong interest shown by hyperscale and enterprise customers and positions us well to capitalise on India’s burgeoning digitalisation needs and drive long-term value for our unitholders. We are on track to complete the development of our data centres in India, accelerate leasing momentum, and unlock value through divestments of partial stakes to strategic investors. With the support of our sponsor, CapitaLand Investment (CLI), we are well-poised to meet the fast-growing demand for data centre capacity in India.”

Manohar Khiatani, Senior Executive Director of CLI, who oversees the group’s data centre business and is Chairman of the Trustee-Manager, adds, “India is a core market for CLI and we see strong growth potential across the asset classes that CLINT is active in, including data centres. This agreement with a leading hyperscaler is a milestone and demonstrates our ability to deliver world-class data centre solutions. It underscores our deep in-country expertise and strong vertically-integrated capabilities in acquiring greenfield land; designing, developing and completing construction on schedule; as well as leasing and operating data centres.

“Digitalisation is the global megatrend of our times and CLI has significantly expanded its data centre business and capabilities worldwide in the last few years. With our 27 data centres across the globe offering more than 800 MW in gross power on a completed basis, we are well-positioned to cater to the expansion needs of hyperscalers and enterprises.

“India is seeing a surge in demand for data storage and processing given the significant scale and growth of mobile and internet users and businesses widely adopting technologies such as AI and Internet of Things. The rapid pace of digital transformation, increased adoption of cloud computing and the need for data localisation will continue to drive demand for data centres. With 30 years of experience in India, strong technical capabilities and a global customer network, CLI is fully equipped to support CLINT’s growth in India.”

CLINT is developing four state-of-the-art facilities in all the key data centre corridors of India (Mumbai, Chennai, Hyderabad and Bangalore). The company says that this strategic diversification strengthens its portfolio in India, enabling it to deliver quality risk adjusted returns to unitholders.