CapitaLand to invest `6,200 cr in TS

Hyderabad: The Government of Telangana on Tuesday has signed a Memorandum of Understanding (MoU) with CapitaLand India Trust Management Pte Ltd, trustee-manager of CapitaLand India Trust (CLINT) for the development of a data centre at CLINT's International Tech Park Hyderabad (ITPH) at Madhapur, with an investment of Rs 1,200 crore ($210 million) over the next 3-5 years.

CLINT has also stated that the current total office space they hold in Hyderabad of close to 6 million sq ft will double over the next five years with a further investment of nearly Rs 5,000 crore.

The MoU was signed by Jayesh Ranjan, the Principal Secretary for ITE&C, and Industries and Commerce Department for Telangana and CLINT Management and exchanged at Hyderabad on Tuesday in the presence of KT Rama Rao, Minister for Information Technology, Industries and MA&UD.

CLINT will leverage CapitaLand Group's data centre expertise to develop the ITPH data centre which will have a built-up area of 2.5 lakh 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.

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, the KTR said: "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 five years."

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 within Hyderabad, Telangana is renowned for its ease of doing business, high quality infrastructure and investment-oriented initiatives, he added. 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," he informed.