A method, executed by one or more processors, includes receiving IR-drop information as a function of location for a placement for a plurality of circuit blocks corresponding to an integrated circuit, calculating a target density for decoupling capacitors as a function of location based on the IR-drop information, placing a plurality of decoupling capacitors according to the target density to provide placed decoupling capacitors. The placed decoupling capacitors may be locally clustered to improve decoupling performance. The method may also include incrementally moving circuit elements or placed decoupling capacitors to avoid collisions within one or more circuit blocks, and routing the integrated circuit. A corresponding computer program product and computer system are also disclosed herein.