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Hyderabad-based CtrlS Datacenters has inaugurated a data centre park in Chennai with an investment of INR 4,000 crore. The company plans to invest an additional INR 5,000 crore over the next two to five years, increasing its total capacity to 75 MW. CtrlS is also exploring land for a larger project in Chennai as part of its USD 2 billion investment plan to expand its overall capacity beyond a gigawatt. The company is reportedly considering an initial public offering (IPO), which could make it one of the first data centre firms to be listed in India. Industry estimates suggest Chennai's data centre capacity will double by 2026, reinforcing its position as a major technology hub.
Hyderabad-based CtrlS Datacenters has launched a data centre park in Chennai, marking an investment of INR 4,000 crore. The company is also considering an initial public offering (IPO) to finance its capital expenditure and future expansion plans. Over the next two to five years, CtrlS anticipates an additional investment of INR 5,000 crore in its Chennai data centre park, which will bring the facility's total capacity to approximately 75 MW. Advertisement
Furthermore, CtrlS is actively seeking new land in Chennai to establish a larger data centre, reinforcing the city's significance in its USD 2 billion investment initiative aimed at expanding capacity from 250 MW to beyond a gigawatt. In 2023, the company had revealed plans to invest USD 2 billion in broadening its operations and developing AI and cloud-ready hyperscale data centres.
The board is reportedly evaluating the potential for an IPO, which, if executed, would make CtrlS one of the first data centre firms to be listed in India.
The Chennai data centre park comprises two facilities-DC1 and DC2-boasting a combined capacity of 75 MW. DC1 alone is expected to receive a direct investment of approximately INR 4,000 crore, with an additional INR 5,000 crore in indirect investments. DC1 is expected to generate 500 direct jobs and 9,000 indirect employment opportunities, contributing to local economic growth.
DC2 is a full-service data centre that will provide a range of vertically integrated services. When DC2 is operational, the total capacity of the Chennai data centre park will reach 72 MW. He added that the investment is expected to materialise over the next two to five years and highlighted that the company is focused on developing a larger campus within Chennai itself.
Once fully operational, the Chennai data centre park is projected to generate substantial GST revenue, estimated at INR 200 crore directly and INR 3,000 crore indirectly on an annual basis. Tamil Nadu's energy sector is also expected to benefit, with projected power revenue of INR 800 crore annually, further strengthening the state's industrial development.
Strategically located in Ambattur Industrial Estate, the data centre park adheres to the highest global standards and will further bolster India's standing as a leading data hub in the region. CtrlS said that it is heavily investing in edge data centres and intends to establish 22 such facilities.
Established in 2007, CtrlS operates 15 data centres across eight cities, including Mumbai, Chennai, Bengaluru, Hyderabad, and Lucknow. With a current capacity of 250 MW, the company aims to add another 650 MW by 2030.
According to a recent report by Icra, CtrlS is projected to incur capital expenditure of INR 3,000-3,500 crore between FY25 and FY27 for data centre construction, a solar power project for captive use, and maintenance. The agency further indicated that the company's revenue expanded at a compounded annual growth rate (CAGR) of 24.4% between FY19 and FY24, reaching INR 1,339 crore in FY24. Revenue is anticipated to grow by 25-30% annually in FY25 and FY26, with the company's capacity expected to double to 180 MW by March 2026 from 90 MW as of March 2024.
This expansion aligns with Chennai's rapid emergence as a technology and connectivity hub. Industry estimates suggest the city's data centre capacity will double by 2026, with current projects set to add 2.6 million square feet (134 MW) by 2026 and an additional 2.5 million square feet (130 MW) anticipated between 2027 and 2028. As of June 2024, Chennai's operational data centre capacity stood at 108 MW.
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