Singapore’s Ascendas Property Fund Trustee Pte. Ltd, the trustee-manager of Ascendas India Trust (a-iTrust), will build data centres in India and invest around INR 1,200 crore (USD 161 million) to develop phase one of its first data centre campus in the country.
The 6.6-acre greenfield site at Airoli will be developed in phases into a fully-fitted data centre campus with a total potential built-up area of up to 575,000 sq. ft and 90 MW of power to host customers such as global technology players and cloud service providers, as well as large domestic enterprise clients.
“The acquisition of the site from third-party vendors is expected to be completed by the third quarter of 2021,” the Singapore Exchange-listed Indian company said in a statement. “The data centre campus will comprise two buildings. In phase one, the first building, which is scheduled to be ready by 2Q 2024, will have a built-up area of about 325,000 sq. ft,” it added.
“Our entry into the data centre sector in India will diversify a-iTrust’s portfolio into an attractive and highly scalable asset class,” said Sanjeev Dasgupta, Chief Executive Officer of the Trustee-Manager of Ascendas India Trust.
"Developing our first data centre campus with support from our sponsor, CapitaLand, will allow us to leverage the CapitaLand Group’s data centre expertise and gives us complete control over the design and quality of the data centre," Sanjeev added.
Demand for data centres in India is rising due to improving technology infrastructure and increasing adoption of new technologies like 5G, artificial intelligence, cloud, and the Internet of Things. These factors are expected to result in an expansion of India’s total data centre capacity at a compound annual growth rate of 31% to 1,007 MW by 2023.
Ms He Jihong, Chief Executive Officer, Data Centre, and Chief Corporate Strategy Officer, CapitaLand Group, said: "With this new development in India, the Group’s investment in data centres this year has amounted to about S$1.7 billion. We will continue to build and leverage our expertise in data centre design, development, and operations across the regions. We look forward to working with our capital and business partners to expand our data centre portfolio in our core markets.”