Walmart is investing in India’s technology landscape, signing a lease for nearly 465,000 sq ft of office space in Chennai to launch its second Global Capability Centre (GCC). The move strengthens the U.S. retail giant’s commitment to tapping into India’s deep tech talent pool and cost-efficient ecosystem.

The new facility will be housed in Block 1 of the International Tech Park Chennai (ITPC), leased from Radial IT Park Pvt Ltd. The lease agreement kicks off on January 1, 2025, for a five-year term at a monthly rent of ₹70 per sq ft — totalling ₹3.26 crore monthly. Walmart has also paid a security deposit of approximately ₹19.55 crore, according to documents shared by Propstack. The rental rate will rise by 4% annually throughout the lease period.

This follows Walmart’s December 2023 lease of 950,000 sq ft in Bengaluru, where it set up its first GCC in India. With the new Chennai centre, Walmart is shaping a strategic tech base across two significant cities to increase innovation, agility, and resilience in its global operations.

“Chennai’s IT corridor has emerged as a prominent hub for GCCs due to the availability of skilled talent, well-developed infrastructure, and cost advantages,” said a source familiar with the development. “Walmart’s decision to establish operations in ITPC further validates Chennai’s growing prominence in the global tech landscape.”

The Chennai GCC is expected to accommodate around 4,500 employees in high-impact tech areas such as data engineering, cloud computing, artificial intelligence, and cybersecurity. This signals Walmart’s intention to move beyond traditional back-office operations and build a full-scale innovation engine from India.

“With capability centres in both Bengaluru and Chennai, Walmart is positioning itself to leverage India not just as a back-office location but as a full-fledged innovation hub,” the source added. “This dual-city presence enhances agility, talent access, and operational resilience — cornerstones for the next phase of growth in a rapidly evolving global retail environment.”

Industry watchers say Walmart’s expansion reflects a broader trend of multinational companies turning to India for strategic tech functions. A recent report by CBRE projects that Global Capability Centres will account for about 40% of total office space leasing across India’s major cities in 2025, driven by consolidation, expansion, and new market entrants.

As global firms seek to future-proof operations and accelerate digital transformation, India’s role as a powerhouse of talent and innovation continues to grow. Walmart’s latest investment reaffirms this shift and positions the company to stay ahead in the competitive global retail-tech space.