Amazon India Buys Land From Lodha Group Worth INR 450 Cr To Build Data Centre

Amazon India has reportedly bought a 38.18-acre land parcel in Palava near Mumbai from Lodha Group, listed as Macrotech Developers, for more than INR 450 Cr to build a hyperscale date centre.

As per ET, Amazon Data Services India, a subsidiary of Amazon India, will get access to the already-sanctioned floor space index, which has a permissible development potential of nearly 4.16 Mn sq ft.

Inc42 has reached out to Amazon India for comments on the development. The story will be updated based on the response.

The report further said that Amazon Data Services India paid more than INR 396 Cr out of the total agreed amount to Macrotech Developers at the time of the execution and registration of the sale agreement. The balance of over INR 54 Cr will be paid within a time frame on completion of a few conditions.

The company has also paid a stamp duty of INR 27 Cr for the registration of the deal, which took place on November 12, according to data analytics firm Propstack, cited in the report. 

The development comes at a time when Amazon is looking to expand its data centres across the globe.

Over a year ago, Amazon’s cloud unit Amazon Web Services (AWS) disclosed its plans to invest $12.7 Bn into data centre infrastructure in India by 2030, to upgrade and scale up cloud infrastructure in the country to meet the growing demand.

On that note, AWS was in discussions to infuse $2 Bn into Telangana to expand its data centre capabilities in the state, in September.

So far, AWS has opened two data centre infrastructures, with one in Mumbai region and the other in Hyderabad region.

Meanwhile, reports revealed that the company has invested large sums to expand its data centres in countries such as Italy, UK, Saudi Arabia, and more.

To understand, the increasing interest in data centres is the fast expansion of India’s digital economy, where a majority population possessing access to digital learning platforms, social media, ecommerce, digital transactions, online gaming, and streaming services, is boosting the demand for reliable data storage and processing capabilities.

Data centres have been one of core areas of investments for global tech players, with Google and Microsoft being equally interested in acquiring land in India.

Furthermore, India’s data centre industry is predicted for a steady growth, with an expected compound annual growth rate (CAGR) of 5.84%, projecting the market size to reach an estimated $9.27 Bn by 2027.