Singapore fund seeks Gulf investors for Indian data centers

Singapore’s CapitaLand Investment is aggressively pursuing Gulf investors for a major data center fund in India, positioning itself at the intersection of emerging AI infrastructure needs and Middle Eastern capital flows. This strategic move comes as India transforms into an AI powerhouse, with computing capacity projected to grow at over 50% annually through 2030 and an increasing trend of AI talent remaining in the country rather than seeking opportunities abroad.

The big picture: Singapore-based CapitaLand Investment aims to raise $200-250 million from Gulf investors to build data centers in India as the country emerges as an artificial intelligence powerhouse.

• The Temasek-backed real estate investment firm manages $90 billion in funds and seeks to deepen its investments in India’s rapidly expanding AI infrastructure.
• “CLI has a global network of capital partners and aims to attract even more investors from the Middle East to invest in our listed and private funds,” said Sanjeev Dasgupta, CEO at CapitaLand Investment India.

Key stats: India’s computing power capacity is projected to reach 17 gigawatts by 2030, growing at a compound annual rate exceeding 50%, according to Jefferies.

• The growth is partly driven by regulations requiring more data to be stored locally within India.
• One in five AI researchers now stay in India for work, up from nearly zero in 2019, according to a May United Nations report.

Regional context: The UAE leads among Gulf state AI investors in terms of foreign investment footprint, channeling billions into opportunities in India and several Western nations.

• Abu Dhabi AI conglomerate G42 established G42 India in 2023 and later announced plans to build up to 2 gigawatts of AI data centers and develop one of India’s largest supercomputers.
• G42 has also developed NANDA, a Hindi large language model, further cementing its commitment to the Indian market.

Beyond India: UAE’s tech investment strategy extends well beyond South Asia into European markets.

• Last week, G42 partnered with Italian AI startup iGenius to develop a major AI supercomputer in Italy.
• This initiative is part of the UAE’s broader $40 billion investment commitment to Italy.