Microsoft Expands Data Centre Footprint In India With Land Parcel Buyout Worth INR 267 Cr

Tech giant Microsoft Corporation has bought 48 acres of land in Hyderabad in a transaction valued at INR 267 Cr.

According to an ET report, the acquisition of the property was facilitated via Sai Balaji Developers, a land aggregator situated in Ranga Reddy district, as indicated in the document shared by data analytics firm Propstack.

“Microsoft has big plans to expand its data centre business and will be developing one of the biggest data centres in the region. The property is located about forty kilometres from the main city of Hyderabad, and the company paid a premium on the land,” a person aware of the deal told ET.

Microsoft’s Hyderabad data centre region has been on an expansion of its current network, which includes three regions in India – Pune, Mumbai and Chennai – all of which have been operational for the past five years.

“Microsoft had also acquired two more land parcels in Hyderabad for the data centre business,” the report added.

As per another report by HT, the per-acre price for the land parcel, situated in Elikatta Village, Farooqnagar Mandal, Ranga Reddy district, Hyderabad, Telangana, amounts to approximately INR 5.56 Cr. 

Reportedly in 2022, Microsoft acquired three land parcels in Hyderabad for approximately INR 275 Cr to establish a data centre.

Microsoft presently operates an India Development Centre (IDC) in Hyderabad, spanning 54 acres, in addition to centres in Bengaluru and Noida. The Hyderabad IDC has been instrumental in the advancement of Microsoft’s technological solutions, including Azure, Windows, Office, and Bing.

Further, in the last two years, Microsoft has been expanding its footprint in the flexible office space sector across the country.

Last year, US-based alternative investment firm Blackstone initiated discussions with Microsoft and Amazon to build data centres in India. Microsoft and Google shared plans to ramp up investments in cloud infrastructure in India.

Meanwhile, Microsoft Corporation India’s operating revenue surged 39% in the year ended March 31, 2023. Operating revenue stood at INR 19,229.4 Cr in the financial year 2022-23 (FY23), a 1.2X increase from INR 13,819.5 Cr in FY22.

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