CapitaLand to Invest Rs 6,200 Crores in Telangana

The Government of Telangana today has signed a Memorandum of Understanding with CapitaLand India Trust Management Pvt. Ltd., trustee-manager of CapitaLand India Trust (CLINT) for the development of a data centre at CLINT’s International Tech Park Hyderabad (ITPH), located at Madhapur.

The MoU was signed by Jayesh Ranjan, the Principal Secretary for ITE&C, and Industries and Commerce Departments for Telangana and CLINT Management and exchanged the MoU at the Trident Hotel in the presence of K.T. Rama Rao, Minister for Information Technology, Industries and MA&UD.

The complete investment that CapitaLand will be making in Hyderabad over next five to seven years is Rs 6,200 Crores split into two investments – one as a data center worth Rs 1,200 Crores and the second is the expansion of their office space in Hyderabad to double their capacity and further invest Rs 5000 Crores. CLINT has also announced that the current total office space they hold in Hyderabad of about 6 million sq. ft. will be doubled over the next 5 years with a further investment of Rs 5000 Crores.

CLINT will leverage CapitaLand Group’s data centre expertise to develop the ITPH data centre which will have a built-up area of 250,000 sq. ft and 36 megawatts (MW) of power capacity. It will incorporate the latest technologies in cooling and security, as well as a dedicated gas insulated substation within the site. Its technologically advanced specifications and sustainability-focused development will allow it to serve hyperscale players and large enterprises in the region. The project is estimated to entail an investment of approximately Rs 1,200 Crores (S$210 million) to be deployed in the next 3 to 5 years.

During the ceremony, CLINT has also stated that the current total office space they hold in Hyderabad of approximately 6 million sq.ft. will double over the next 5 years with a further investment of approximately Rs 5000 Crores. CLINT is also looking to expand its portfolio in Telangana and Hyderabad by entering other new thrust sectors in infrastructure including Logistics and Solar Power plants.

Telangana will provide all support needed to CLINT in order to achieve the same.

On this occasion, minister K. T. Rama Rao said: “I am very happy to see CapitaLand invest in Telangana. Today, Hyderabad is one of the fastest growing Data Center markets in India and CapitaLand’s investment adds to the pace we look to keep up. I hope to continue this relationship and hope the state can work together with CapitaLand to get not only Data Center investments, but also other infrastructure projects in logistics and renewable energy. It is a sign of confidence in the Hyderabad IT/ITeS journey to see CapitaLand plan to double their office space in Hyderabad over the next 5 years.”

Mr Sanjeev Dasgupta, Chief Executive Officer, CLINT said: “This is CLINT’s second data centre development project in India, following our entry into India’s data centre market by acquisition of a greenfield data centre development site in Navi Mumbai in 2021. CapitaLand Group has operated in the State of Telangana for almost two decades. CLINT owns and manages three business parks in Hyderabad – ITPH, CyberPearl and aVance – aggregating to 3.8 million sq ft and catering to close to 70 global organisations and over 30,000 professionals. Located in Hyderabad. Telangana is renowned for its ease of doing business, high quality infrastructure and investment-oriented initiatives. CLINT will continue to strengthen our portfolio with high quality new economy assets, with another two data centre projects planned in two key markets to diversify the portfolio and create value for our shareholders.”

Mr Patrick Boocock, CEO, Private Equity Alternative Assets, Real Assets, CapitaLand Investment said: “Over the last few years, CapitaLand Group has rapidly built strong competencies in data centre design, development and operations, with 25 data centres across Asia and Europe that will offer more than 500 MW of power on a completed basis. We are excited to embark on our second data centre project in India with CapitaLand India Trust as we expand our data centre business globally. Our latest Hyderabad project will incorporate state-of-the-art technology, with sustainability being a key consideration in its design and development. The project reinforces our commitment to becoming a strategic data centre operator in India.”

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