Amazon India has made a significant move in the real estate sector, acquiring a 38.18-acre land parcel in Palava, near Mumbai, from real estate developer Macrotech Developers (Lodha Group) for over Rs 450 crore. This acquisition is part of Amazon Data Services India’s plan to establish a hyperscale data centre, further expanding its cloud infrastructure in the country.
The deal, finalized on November 12, 2024, includes access to a substantial floor space index (FSI) of around 4.16 million square feet, allowing for large-scale development. At the time of the sale agreement, Amazon paid Rs 396 crore, with the remaining balance of Rs 54 crore due upon fulfillment of certain conditions. Amazon Data Services India also paid Rs 27 crore in stamp duty for the registration of the property. This acquisition follows a series of similar investments by Amazon in India’s rapidly growing data centre market. Last year, Amazon leased a four-acre land parcel in Mumbai’s Powai suburb from Larsen & Toubro for a long-term data centre project. This move aligns with Amazon Web Services’ broader commitment to India’s digital and AI transformation, highlighted by planned investments in cloud infrastructure. The company has already pledged $12.7 billion in investments by 2030, underscoring its confidence in India’s expanding digital landscape.
Data centres are becoming increasingly essential in India, driven by the country’s rising digitization, gaming, e-commerce, payments, and emerging technologies like the metaverse. Alongside Amazon, other global players such as Google and Microsoft are setting up hyperscale data centres in India, marking the sector as a key growth opportunity for both global investors and developers. The growing demand for data storage and processing capabilities has led to substantial investments in the data centre market, with major players developing large-scale campuses across the country. As India continues to digitize, the importance of data centres for everything from payment systems to entertainment and beyond will only increase.
