Global investment firm Blackstone anticipates a fivefold expansion in its data centre capacity in India, driven by the rising adoption of cloud computing, 5G technology, and strengthened data protection policies. The firm’s data centre platform, Lumina CloudInfra, is currently constructing two hyperscale data centres in Navi Mumbai with a combined capacity of 60 megawatts (MW). These centres are expected to be operational within the next 12–18 months.
“There is three times the demand for data centres here,” stated Asheesh Mohta, Head of Real Estate Acquisitions, India, at Blackstone. He attributed this growth to India’s affordability of data and its relatively low base for data centre infrastructure. However, Mohta highlighted challenges, particularly with securing power and land, as critical hurdles to scaling operations. “If you can sort that out, there are no limits for growth,” he added.
Financing for the data centre projects will come primarily from Blackstone’s own funds, with the potential use of construction debt. Mohta noted that the capital-intensive nature of the industry, where building one MW of data centre capacity costs approximately ₹50 crore, poses a significant entry barrier for competitors.
The global demand for data centres also remains strong, reinforcing Blackstone’s bullish stance on the sector.
In addition to its data centre initiatives, Blackstone is gearing up to monetize its warehousing business under Horizon Industrial Parks. The platform currently has a portfolio of 50 million square feet, of which 50% is already built. The remaining space is expected to be developed over the coming years. Blackstone plans to scale the business and capitalize on the right market value within a year or two.
However, the fund house may avoid taking the Real Estate Investment Trust (REIT) route due to unfavorable guidelines for the warehousing segment. “Sectors poised for this kind of growth need cash flows. Like our hospitality business, a normal corporate structure is better for them,” Mohta explained.
Blackstone’s hospitality initiative, Ventive Hospitality, developed in collaboration with Panchshil Realty, is set to launch an initial public offering on December 20.
Mohta further emphasized the importance of land ownership in the warehousing sector, citing it as a key factor for value creation. He pointed out the challenges associated with land aggregation but noted that Blackstone prefers to acquire land directly from owners rather than aggregating it themselves.
Blackstone’s aggressive focus on data centre and warehousing infrastructure underscores its confidence in India’s growing digital economy and industrial ecosystem, marking a pivotal phase in the firm’s expansion strategy.
