CPP Investments has committed up to ₹70 billion to Indian data center operator CtrlS, combining a direct equity investment with a new joint venture for hyperscale campuses. The partnership will support infrastructure for cloud providers, enterprises, and AI workloads across India.
CPP Investments will invest ₹40 billion to acquire an 8.2% stake in CtrlS. It will commit up to another ₹30 billion to the joint venture, where it will hold a 48% interest and CtrlS will retain 52%.
Joint Venture Will Develop Hyperscale Campuses
The companies will use the joint venture to build large data center campuses designed for hyperscale cloud and AI customers. They disclosed the ownership structure and investment commitments in their official announcement.
Founded in 2007, CtrlS operates data centers across major Indian markets and has 227 megawatts of operational capacity. The Hyderabad-based company is targeting one gigawatt of capacity by 2030.
CtrlS founder and CEO Sridhar Pinnapureddy said demand from hyperscalers, cloud providers, and enterprises was already increasing. He said the partnership would help the company expand reliable and sustainable infrastructure suited to AI workloads.
CPP Investments has invested directly in data centers since 2017 and holds assets and joint ventures across several international markets. It made its first investment in India in 2009 and opened a Mumbai office in 2015.
The pension investor held more than ₹1.85 trillion in net assets in India as of March 31, 2026. Its total fund assets stood at C$793.3 billion.
India Attracts More Data Center Investment
India has attracted large commitments from cloud companies, data center operators, and domestic conglomerates as demand for computing capacity increases. Blackstone-backed AirTrunk recently announced plans to invest $30 billion and develop more than five gigawatts of Indian data center capacity by 2030.
CtrlS previously announced a $2 billion investment program covering new hyperscale and edge facilities in India and selected Southeast Asian markets. Its plans included adding about 350 megawatts of capacity and investing in renewable energy projects.
The Indian government has also proposed a tax holiday through 2047 for eligible foreign companies providing global cloud services through data centers located in the country. Services sold to Indian customers would need to pass through a local reseller and remain subject to domestic taxes.
AI Infrastructure Raises Resource Requirements
India’s data center expansion is expected to increase demand for electricity, cooling systems, land, and water. AI systems require dense computing equipment that can consume more power and produce more heat than conventional enterprise workloads.
CtrlS has been investing in liquid cooling, AI-focused power systems, and renewable energy to support higher-density facilities. The company is also developing solar capacity and has signed an agreement with NTPC Green Energy covering renewable projects of up to two gigawatts or more.
Featured image credits: Magnific.com
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