Startup Originals Team
CtrlS DataCentres has raised ₹250 crore in equity funding from prominent Indian entrepreneurs and investors as the company accelerates its expansion amid growing demand for data centre infrastructure driven by artificial intelligence, cloud computing and digital services.
The funding, as reported in the supplied source, includes an investment from Zerodha cofounder Nikhil Kamath and Sreeram Reddy Vanga, cofounder of adtech company Kofluence. The fresh capital comes shortly after CtrlS secured a much larger ₹7,000 crore commitment from CPP Investments for its next phase of expansion.
The latest investments underline the growing interest among private investors in India’s data centre sector, where demand for computing capacity is rising rapidly because of AI applications, cloud adoption and the expansion of hyperscale technology companies.
What Happened?
CtrlS DataCentres has raised ₹250 crore in equity funding from investors including Nikhil Kamath and Sreeram Reddy Vanga, according to the information provided for this report.
The company plans to use fresh capital to support its expansion as demand for data centre capacity increases across India. The investment comes at a time when operators are investing heavily in new facilities to serve enterprises, cloud providers and hyperscalers.
CtrlS’s latest fundraise follows its strategic partnership with CPP Investments announced in June 2026. Under that agreement, CPP Investments committed up to ₹7,000 crore to CtrlS. The transaction includes ₹4,000 crore for an 8.2% stake in CtrlS and another ₹3,000 crore commitment toward a joint venture to develop hyperscale data centre campuses across India.
The CPP Investments transaction valued CtrlS at about $4.7 billion to $4.8 billion on a pre-money basis, making it one of the largest recent investments in India’s data centre infrastructure sector.
Key Details
The ₹250 crore investment is significant because CtrlS has historically relied heavily on promoter capital and internal accruals to finance its expansion. The company had also raised money from friends and family investors before bringing in CPP Investments as its first major institutional investor.
CtrlS is now preparing for a much larger capacity build-out. The company has said it plans to reach around 4 GW of data centre capacity by 2031 and expects to maintain a significant share of India’s growing data centre market.
The company currently has hundreds of megawatts of operational capacity, while a much larger pipeline is under construction or at the planning stage. Business Standard reported that CtrlS had about 1.2 GW under construction, with more than 3 GW in the planning stage and land and power secured for those projects.
The company is also expanding beyond traditional large data centre markets. Its growth strategy includes facilities designed to serve hyperscalers, cloud providers and AI workloads.
CtrlS’s expansion comes as India’s data centre market enters a major investment cycle. AI workloads require significantly greater computing power and storage capacity, increasing demand for specialised infrastructure that can support high-density computing.
Company Background
CtrlS DataCentres is an Indian data centre infrastructure company founded and led by Sridhar Pinnapureddy. The company operates data centres designed to serve enterprises, financial institutions, cloud providers and other large customers.
CtrlS has developed a large presence in India’s data centre market and is among the country’s leading operators by active capacity. Its competitors include global and domestic operators such as NTT Global Data Centers, Equinix and ST Telemedia.
The company’s business has grown alongside India’s broader shift toward cloud computing, digital payments, online services and enterprise technology.
CtrlS reported operating revenue of ₹1,561.8 crore in FY25, up 16.6% from ₹1,339 crore a year earlier. Its net profit stood at ₹248.1 crore in FY25, compared with ₹247.7 crore in FY24, according to company filings cited by Mint.
Industry Impact
The investment highlights the increasing importance of data centres as India builds infrastructure for the next phase of its digital economy.
AI is emerging as one of the biggest drivers of new data centre demand. Training and running AI models requires large amounts of computing power, while businesses are also increasing their use of cloud-based applications and data-intensive services.
This is prompting data centre operators to secure land, power, connectivity and capital well ahead of demand. The sector is attracting major investments from infrastructure funds, technology companies, telecom groups and large Indian conglomerates.
For CtrlS, access to additional capital can help it compete for this growing opportunity. Its partnership with CPP Investments gives the company institutional funding for capacity expansion, while the latest private investment adds another source of capital.
The investment also reflects growing investor interest in digital infrastructure as a long-term asset class. Data centres require significant upfront spending but can generate recurring revenue through long-term contracts with enterprise and technology customers.
Future Plans
CtrlS is targeting a major increase in capacity over the coming years. The company has said it aims to build around 4 GW of capacity by 2031, supported by rising demand from AI, cloud computing and hyperscale customers.
The company plans to add about 700 MW of capacity by the end of 2027 and another 800 MW in 2028, according to Mint. It has also indicated plans to expand into cities that have traditionally had limited data centre infrastructure.
The CPP Investments partnership is expected to play an important role in this expansion. The joint venture between the two companies will focus on developing hyperscale data centre campuses across India, with CtrlS holding 52% and CPP Investments holding 48%.
CtrlS has also indicated that it could pursue an IPO in the coming years as its capital requirements increase. The company’s leadership has previously suggested a possible listing window of roughly one to three years.
Conclusion
CtrlS DataCentres’ ₹250 crore equity funding from private investors comes at a critical time for India’s rapidly expanding digital infrastructure market.
The investment adds to a much larger ₹7,000 crore commitment from CPP Investments and supports CtrlS’s ambition to significantly increase its data centre capacity.
With AI and cloud computing driving demand for high-performance infrastructure, CtrlS is positioning itself for another phase of expansion. Its ability to execute the planned capacity build-out, secure sufficient power and land, and maintain long-term enterprise and hyperscaler relationships will determine how effectively it can capture India’s growing data centre opportunity.
