Now Reading: CPPIB says India ticks all boxes for long-term investment
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CPPIB says India ticks all boxes for long-term investment
Canada Pension Plan Investment Board (CPP Investments) has said India offers strong long-term investment potential due to its economic growth, positive demographics and expanding middle class. The Canadian pension fund, which has…
Canada Pension Plan Investment Board (CPP Investments) has said India offers strong long-term investment potential due to its economic growth, positive demographics and expanding middle class. The Canadian pension fund, which has invested Rs 2.25 trillion in Indian markets, sees data centres, infrastructure and real estate as key opportunities.
CPP Investments has committed to a Rs 588 crore stake in data centre operator CtrlS Datacenters and formed a joint venture to develop hyperscale campuses across India. It has also invested in KKR Asian Fund V and Accel Core, besides holding stakes in NSE, Kotak Mahindra Bank, Flipkart and Hexaware Technologies.
The firm said it is too early to determine winners in the AI race but noted that India offers one of the lowest total costs of ownership for hyperscalers globally. CPP Investments' net assets in India reached an all-time high as of June 30, growing nearly 17-fold since 2015.
Indian Opinion Analysis
The CPPIB's Rs 2.25 lakh crore India exposure makes it one of the largest foreign institutional investors in the country, alongside ADIA and Temasek. Its bet on data centres through CtrlS comes as global hyperscalers like Google, Amazon and Microsoft expand their India cloud regions, drawn by some of the lowest total cost of ownership globally. The infrastructure push aligns with the government's National Data Centre Policy and the Digital India programme, which aim to attract Rs 5 lakh crore in data centre investments by 2030. Whether India can capture the AI workloads flowing to the US and China will determine if this bet pays off. The next signal is how quickly CPPIB scales its CtrlS partnership beyond the initial JV for hyperscale campuses.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
