Torbit Spotlight

$10 Billion Investment For Data Centres : UP Targets Rs 30K crore Private Investment

On the back of rising demand for storage capacity with a sharp growth in internet services, Data Centres are likely to attract investments of $ 10 billion in the next three years.

According to a recent CII- Colliers  Report, India’s data centre market has experienced remarkable growth post-pandemic, attracting about $ 7 billion  of total investments since 2020. As of August 2023, the data centre capacity across seven major cities- Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad and Pune stands at 819 MW, spread across 11 million sft area. Colliers India has predicted that the data centre stock is expected to cross 23 million square feet by 2026, catering for a total data centre capacity of around 1800 MW.

The Uttar Pradesh government is targeting private sector investments worth Rs 30000 crore to boost Noida’s data centre infrastructure . Leading Indian and global firms, such as Hiranandani Group, Adani Group, NTT Japan and Web Werks have launched projects worth Rs 20000 crore so far. The Yamuna Expressway Industrial Development  Authority is promoting private sector investment in data centre projects by offering various incentives.

Shriram Housing Finance Eyes Rs 28000 Crore AUM

Aiming to be number one in affordable housing, Shri Ram Housing Finance is planning to achieve a book size of Rs 25000 crore – 28000 crore in three years. Currently, its assets under management (AUM) is over Rs 10000 crore which makes it the third largest HFC in the affordable housing space.

The housing finance company, according to its Managing Director & Chief Executive Officer, Ravi Subramanian , has expanded its distribution network in the North. Shri Ram Housing Finance, will be originating almost double the amount (Rs 8000 crore) this year, compared to Rs 4100 crore last year. That should help boost the company’s AUM to Rs 13000 -15000 crore in the current fiscal.

The company which operates in various segments with an average ticket size of loans at Rs 17-18 lakh, plans to enter into more co-lending pacts with banks. Currently, it has co-lending pacts with SBI, Punjab & Sind Bank and Axis Bank.

$ 8 Billion Singapore Funds For  Indian Realty

While Western investors are largely  focusing on their existing investments in  Europe and West, Singapore -based investors are out to seize the opportunity by stepping up their investments in Indian real estate.

Three  major Singaporean funds – CapitaLand , Keppel Land and GIC are upping their ante. CapitaLand Investment  which currently has an operational portfolio of 29.7 million square feet across business parks, industrial and logistics parks  is looking to double its investment portfolio to 50 million square feet in the next 4-5 years. CapitaLand, which has over 11 million square feet of office space under development  across six cities , will be investing in key warehousing and manufacturing hubs besides emerging markets through its logistics platform- Ascendas Firstspace.   CapitaLand is also making investments in the data centre business across Navi Mumbai, Chennai, Bangalore and Hyderabad. In a latest move, CapitaLand has announced the launch of CapitaLand India Growth Fund 2, a business park development fund with a target size of $525 million for making investments in Grade A business parks.

Singapore-based investor cum developer Keppel Land which has of late been investing in residential and commercial properties in India, has also drawn plans to launch its India Property Fund. Singapore sovereign fund GIC has been proactive in snapping up properties in India. In May this year, it had joined Brookfield India REIT  to acquire two large commercial assets totalling 6.5 million square feet for a valuation of $ 1.4 billion.