CPP Investments bets $741 million on India’s AI data center expansion

The agreement grants CPP Investments an 8.2% stake in CtrlS for ₹40 billion, with an additional ₹30 billion earmarked for a joint venture focused on building hyperscale campuses. CtrlS, which currently manages over 15 facilities, will retain a 52% majority in the new venture. For the Canadian fund, this move deepens a footprint in India that already commands $20 billion in net assets.

India’s data center market has attracted significant international capital as global tech giants scramble to secure capacity for AI workloads. Blackstone-backed AirTrunk recently announced plans for a $30 billion investment, while Meta has partnered with Reliance Industries on a Gujarat-based project. These initiatives align with New Delhi’s efforts to incentivize foreign cloud providers through long-term tax exemptions, turning the country into a primary hub for global computing power.

Despite the massive influx of physical infrastructure, a gap remains between India’s hardware capacity and its internal software development. Most local enterprises still rely on U.S.-based firms for core AI technology, as indigenous efforts like Sarvam remain in the nascent stages. Furthermore, the rapid scaling of these data centers places immense strain on local electricity and water resources, posing a long-term sustainability challenge for the country’s digital ambitions.