THE trustee-manager of CapitaLand India Trust : CY6U 0% has signed a memorandum of understanding with the government of India’s Telangana state to develop a data centre in Hyderabad.

The data centre, to be situated at the trust’s eight-hectare International Tech Park in Madhapur, will have a built-up area of approximately 250,000 square feet and 36 megawatts of power capacity. Madhapur is a suburb of Hyderabad and is known as a centre for information technology activity. 

Approximately INR1,200 Crores (S$210 million) is expected to be deployed in the next three to five years for this project, CapitaLand India Trust Management said in a filing on the Singapore bourse on Tuesday (Dec 6).

The centre will be developed with the latest cooling and security technologies, and will include a dedicated gas insulated substation. “Its technologically advanced specifications will allow it to serve hyperscale players and large enterprises in the region,” the trustee-manager said.

This is the trust’s second data centre development project in India, following its acquisition of a greenfield data centre development site in Navi Mumbai in 2021.

CapitaLand India Trust chief executive officer Sanjeev Dasgupta said the trust has another two data centre projects planned in two key markets. He noted that Telangana is known for its ease of doing business, infrastructure and investment-oriented initiatives, and that CapitaLand India Trust will continue to strengthen its portfolio with “high-quality new economy assets”.

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Shri K.T. Rama Rao, India’s minister for information technology, industries, and municipal administration and urban development, said Hyderabad is one of the fastest-growing data centre markets in India. “The investment adds to the pace we look to keep up,” said the minister, who was present at the signing.

Units of CapitaLand India Trust ended Tuesday at S$1.15, down 1.7 per cent or S$0.02.