CapitaLand and Web Werks to build new data centres in Chennai

CapitaLand and Web Werks to build new data centres in Chennai

The government of Tamil Nadu has signed MoUs with two firms with the goal of constructing data centres in and near Chennai.

According to Data Centre Dynamics, Singaporean real estate firm CapitaLand has pledged to invest US$160.7 million to build a site in the Ambattur region west of Chennai. Domestic data centre company Web Werks plans to invest US$93.7 million in a filing for ‘Siruseri/Ambattur’, suggesting that it could build two sites.

In January 2021, Business Standard reported that CapitaLand planned to develop data centres in partnership with private equity firm Shapoorji Pallonji Investment Advisors, with a planned joint US$5 billion investment across the next five years. The Ambattur area of Chennai was named as the likely first site.

CapitaLand has some experience of the Indian data centre space, with its subsidiary Ascendas India Trust announcing earlier this month that it planned to launch a 90MW data centre site in Navi Mumbai. The trust owns a number of IT facilities across India in cities including Bangalore, Chennai, Hyderabad, Mumbai and Pune.

Web Werks meanwhile has also been pledging further investment in data centres, signing and agreement earlier this month with the government of Karnataka to set up a US$100 million data centre site in Bengaluru. The site is due to launch in 2023.

An established presence in India’s data centre space, Web Werks has facilities in Delhi, Mumbai and Pune, and is looking to expand in these as well as add new sites in Chennai and Hyderabad – as well as the aforementioned Bengaluru site.


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