CapitaLand is building four major data centers in India, taking advantage of what Managing Director Surajit Chatterjee describes as a huge population underserved by digital infrastructure, a supportive government and keen hyperscaler interest in the country. 

In an interview with Cool Vector, Chatterjee details the thesis behind CapitaLand's data center strategy in India as well as the macro conditions he argues make the country a prime destination for digital infrastructure investment. 

Among the key takeaways from the interview:

• CapitaLand is pursuing a large-campus, hyperscaler-first strategy in India, leveraging its real estate and energy expertise, while opening doors for private equity partners in its next growth phase.

• India’s data center market is at an inflection point, driven by hyperscalers seeking strategic capacity as the country’s digital economy accelerates. Global hyperscalers now account for the majority of India's data center demand, positioning the country as a critical growth market amid rising cloud, AI, and digital services penetration. "The hyperscalers have understood that for them to grow faster in the APAC, India becomes a very strategic location."

• Government reforms—including state-level incentives—have streamlined project approvals, reducing timelines and risk for data center developers. India’s regulatory modernization has created a more predictable environment for investors, enabling faster land acquisition, licensing, and project execution. "The central government took an early strategic step, and they declared this asset class [to be] an infrastructure status, which enabled it to de-align itself from the IT policy of the country."

• Institutional investors see India’s data center sector as a long-term infrastructure play, supported by government initiatives, improving power access, and predictable demand from hyperscalers.

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