Real estate investment company CapitaLand India Trust Management Pte. Ltd. (CLINT), has just announced that it is acquiring a 4.01-acre site in Chennai for INR832.8 million (approximately $14.1 million), to develop its third data center in India.

While expecting to close the acquisition by December 2022, CapitaLand stated that the proposed data center will have a power capacity of 55MW, with the intention of serving customers such as global technology giants and cloud service providers, as well as large domestic enterprise clients.

“With this latest acquisition, CLINT will have a presence in India’s key data center markets – Navi Mumbai, Hyderabad and Chennai, and we are also planning to develop a fourth data center in Bangalore. This will allow us to expand in the resilient and highly scalable data center asset class, diversify our data center portfolio geographically, and enable us to better serve our customers across the country,” said Mr. Sanjeev Dasgupta, Chief Executive Officer, CLINT.

The company plans to invest approximately INR19.4 billion ($328.8 million) to acquire the site and for the construction of the data center, which is to be delivered in phases over the next four to five years.

“CLI has been seeing rising investor interest in the digital infrastructure sector and we are actively working on a pipeline of data center deals in Asia.  India is a particularly interesting market; in the last five years, US$14 billion has been invested in India’s data center sector, and the amount is expected to cross US$20 billion by 2025,” said Mr. Patrick Boocock, CEO, Private Equity Alternative Assets, CapitaLand Investment (CLI).

CLINT’s acquisition of this Chennai site follows its recent Memorandum of Understanding with the Telangana Government to develop a data center in its International Tech Park Hyderabad. As announced, the data center is proposed to deliver 36 megawatts (MW) of load capacity and to be built on an area of approximately 250,000 SQ FT, while taking advantage of CapitaLand Group’s data center expertise.