Scaling Smart: CapitaLand’s Sustainable Data Vision for India

India’s data centre sector is experiencing significant growth, propelled by rapid digital adoption, evolving regulations, and advances in technology. In response, CapitaLand Data Centre (CLDC) is developing scalable, AI-compatible, and sustainable infrastructure. In this interview, Surajit Chatterjee, Managing Director of Data Centre India at CapitaLand Investment, shares insights into CLDC’s approach to AI, sustainability, and future data management needs.

India’s data centre capacity is projected to soar from 350 MW in 2019 to 1,645 MW by 2026, underscoring the nation’s rapid digitalisation. With the data centre sector recently granted ‘infrastructure status’ in the national budget, local and foreign investments are pouring in, bolstering India’s positioning as a global data hub. CapitaLand Data Centre (CLDC) is actively participating in this evolution, utilising advancements in AI, sustainability, and high-density infrastructure to address the increasing demand. In a conversation with Minu Sirsalewala, Executive Editor at Dataquest, Surajit Chatterjee shares insights into CLDC’s role in this burgeoning landscape and the technologies driving India’s data future.

India’s data centre capacity has surged from 350 MW in 2019 to a projected 1,645 MW by 2026. What key factors have driven this exponential growth, and how does CLDC plan to stay ahead in this rapidly evolving landscape?

India’s data centre landscape has witnessed remarkable growth due to several converging factors. Firstly, the rapid digital transformation across industry sectors has led to an unprecedented increase in data generation and consumption. The proliferation of smartphones, affordable internet, and the government’s Digital India initiative have collectively accelerated the adoption of digital services.

A pivotal factor driving this growth is the Indian government’s decision to grant data centres ‘infrastructure status’ in the national financial budget.

Additionally, regulatory developments like data localisation laws have compelled global enterprises to store data within the country, further boosting the demand for local data centres. Also, the surge in cloud adoption, e-commerce, fintech, and the advent of technologies like AI and IoT have significantly contributed to this exponential growth.

A pivotal factor driving this growth is the Indian government’s decision to grant data centres ‘infrastructure status’ in the national financial budget. This recognition has opened access to favourable financing options, tax benefits, and streamlined approval processes. By categorising data centres as critical infrastructure, the government has made it more attractive for domestic and foreign investors to invest in this sector, accelerating the development of new facilities across the country.

We are implementing innovative solutions like on-site 220 kV Gas-Insulated Switchgear (GIS) substations, which allow us to deliver higher power capacities directly to our facilities.

At CapitaLand Data Centre (CLDC), we recognise the dynamic nature of the Indian market. To stay ahead, we are committed to expanding our footprint by developing state-of-the-art hyperscale-designed and AI-ready data centre facilities that cater to the evolving needs of our clients. We are one of the few Global Data Centre operators who announced four mega data centre projects in India, namely Mumbai, Hyderabad, Chennai and Bangalore, within the first year. We focus on leveraging modern technologies, ensuring operational excellence, and providing scalable and resilient digital infrastructure. Our strategic investments and partnerships align with the industry’s growth trajectory, enabling us to offer high-quality services while remaining flexible to adapt to emerging market trends.

With AI integration becoming a critical demand driver, how is CLDC adapting its data centre solutions to meet the specific needs of AI workloads? Could you share any innovative technologies or strategies that CLDC is implementing to support AI-driven enterprises?

AI workloads demand high-density computing power, low latency, and robust cooling solutions due to the significant heat generated by advanced processors like GPUs and TPUs. CLDC is adapting to these requirements by incorporating high-density racks and advanced cooling systems, such as liquid-cooling technologies, to efficiently manage thermal loads and support higher computational demands.

We are implementing innovative solutions like on-site 220 kV Gas-Insulated Switchgear (GIS) substations, which allow us to deliver higher power capacities directly to our facilities. This ensures scalability and reliability, essential for AI applications. Additionally, we are exploring edge computing strategies to bring computational resources closer to data sources, reducing latency and improving performance for AI-driven enterprises.

Our data centres are designed with adaptability in mind, allowing us to accommodate rapid advancements in AI hardware. We provide best-in-class floor loading capabilities of 2,000 kg per square metre and the flexibility to accommodate up to 60U rack heights due to the 6-metre clear height we provide on each floor.

Over the next five years, we anticipate that India will continue to emerge as a leading global data hub. The country’s favourable demographics, supportive government policies, and ongoing digital transformation will likely outpace other emerging markets.

We also provide a multi-utility area on each server hall floor that can be customised as per customer requirements for storage, seating, or specialised cooling PODs with advanced liquid cooling capabilities like liquid immersive cooling, direct-to-chip cooling, and rear door heat exchangers. By investing in infrastructure that supports high-density computing and collaborating closely with our clients to understand their specific needs, we ensure that CLDC remains at the forefront of supporting AI integration.

Given India’s cost advantages and talent pool, what specific steps is CLDC taking to enhance India’s appeal as a global data hub? How do you see this evolving in the next five years, particularly in comparison to other emerging data centre markets?

India’s cost competitiveness and vast talent pool make it a desirable destination for global data centre investments. CLDC is enhancing India’s appeal by investing in world-class infrastructure that meets international standards. We are adopting global best practices in data centre design, construction, and operations to provide reliable and efficient services.

We focus on energy efficiency, sustainability, and advanced technologies to attract global enterprises seeking high-quality data centre solutions. We aim to create an ecosystem that supports innovation and growth by leveraging local expertise and fostering partnerships with technology providers.

Over the next five years, we anticipate that India will continue to emerge as a leading global data hub. The country’s favourable demographics, supportive government policies, and ongoing digital transformation will likely outpace other emerging markets. CLDC is committed to contributing to this evolution by expanding our services and continuously enhancing our offerings to meet local demands with global standards.

CLDC is pioneering with on-site 220 kV GIS substations and liquid cooling solutions. Could you elaborate on how these innovations are setting a new standard in the industry, and how they align with the future needs of enterprises, particularly those dealing with high-density computing?

Implementing on-site 220 kV GIS substations allows us to receive power directly from the transmission grid, enhancing power reliability and reducing transmission losses. This setup improves efficiency and supports the higher power densities required by modern data centres, especially those handling high-density computing tasks like AI and machine learning workloads.

Liquid-cooling solutions are becoming increasingly important as processors become more powerful and generate more heat. By adopting advanced liquid cooling technologies, we effectively manage thermal loads, improve energy efficiency, and support higher rack densities. This is crucial for enterprises requiring significant computational power and aiming to optimise operational costs.

These innovations position CLDC at the forefront of industry standards, enabling us to meet the future needs of hyperscalers and large enterprises. By embracing such technologies, we provide our clients with scalable, efficient, and sustainable solutions that support their growth and technological advancements.

Sustainability is a cornerstone of CLDC’s strategy. How are you integrating green energy and sustainable practices within your data centres, and what role does this play in CapitaLand’s broader 2030 Sustainability Master Plan?

Sustainability is integral to CLDC’s operations and aligns closely with CapitaLand’s 2030 Sustainability Master Plan. We are committed to reducing environmental impact by integrating green energy solutions and sustainable practices in our data centres.

To reduce power consumption, we incorporate energy-efficient designs, such as advanced cooling systems and optimised power usage effectiveness (PUE). We are investing in renewable energy sources to supply our facilities with clean energy. Additionally, we implement water conservation measures and utilise environmentally friendly materials in our construction practices.

Our focus on sustainability reduces our carbon footprint and provides cost benefits to our clients through improved operational efficiencies. By embedding sustainability into every aspect of our operations, we contribute to CapitaLand’s broader environmental stewardship, social responsibility, and governance excellence goals.

As India’s data localisation norms become more stringent, how is CLDC tailoring its infrastructure to cater to region-specific needs across diverse Indian states? Are there unique challenges or opportunities in hyperlocalising data centres in India compared to other markets?

India’s diverse geography and stringent data localisation norms present both challenges and opportunities. CLDC is tailoring its infrastructure to cater to region-specific needs by strategically selecting data centre locations that comply with regulatory requirements and meet client demands.

We are building data centres across key regions in India, ensuring data sovereignty and compliance with local laws. By understanding the unique characteristics of each state—such as climatic conditions, power availability, and connectivity infrastructure—we design our facilities to operate optimally in those environments.

Hyperlocalising data centres in India involves navigating varying regulatory landscapes and infrastructure capabilities. However, it also offers opportunities to provide localised services, reduce latency, and improve customer experiences. Compared to other markets, India’s scale and diversity require a nuanced approach, and CLDC leverages the CapitaLand group’s real estate DNA and expertise to effectively manage these complexities while capitalising on the opportunities they present.

With the rapid adoption of emerging technologies like 5G, IoT, and edge computing, how is CLDC evolving its data centre design to meet the unique demands these technologies bring? Could you share any forward-looking strategies that CLDC is implementing to stay ahead of these trends?

The emergence of technologies like 5G, IoT, and edge computing is reshaping the data centre landscape, requiring low-latency connections and localised processing power. CLDC is evolving its data centre design by incorporating edge data centre solutions that bring computational resources closer to end-users.

We are exploring modular and scalable designs allowing quick deployment in strategic locations. Our data centres are equipped with high-speed connectivity and are designed to handle the increased data traffic resulting from IoT devices and 5G networks.

To stay ahead of these trends, CLDC is investing in research and development, partnering with technology leaders, and continuously updating our infrastructure to support future technologies. We are constantly evaluating new locations in Tier 2 and Tier 3 locations in our quest to be as close as possible to the users. We focus on building a robust ecosystem that fosters innovation, ensuring we can meet the evolving demands of our clients as these technologies mature.

Surajit Chatterjee

Managing Director of Data Centre India, CapitaLand Investment

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