Amazon India Acquires land In Lodha Palava for another Data Centre in MMR Region

Amazon India Acquires 38.18 Acres in Palava for Hyperscale Data Centre, Highlighting Growing Demand for Data Centres Among Global Tech Giants

Amazon India has made a significant move in India's digital infrastructure space by acquiring a 38.18-acre land parcel in Palava near Mumbai from Lodha Group (Macrotech Developers) for over 450 crore. This transaction underscores Amazon’s commitment to catering to the country’s burgeoning demand for cloud services and data storage, while also shedding light on how global tech companies are increasingly eyeing India for data centre development.

Amazon’s Strategic Investment in Palava

The acquisition includes a sanctioned floor space index (FSI) of around 4.16 million sq ft, enabling Amazon to develop a cutting-edge hyperscale data centre. With 396 crore already paid, and 54 crore pending completion of specific conditions, Amazon's investment reinforces Palava's position as a preferred hub for large-scale developments.

This acquisition is part of Amazon's broader strategy to expand its data infrastructure in India, adding to its projects in Powai, Thane, and other key regions.

Data Centres and India’s Growing Appeal

India is becoming a focal point for global tech companies investing in data centres, driven by rapid digitisation, increasing cloud adoption, and demand for technologies like AI, IoT, and the metaverse. The country’s data centre market, valued at $4.9 billion in 2023, is projected to reach $10.2 billion by 2028 at a CAGR of 15%.

Amazon’s investment in Palava complements other large-scale moves in the region, including:

  1. Google’s Expansion in Navi Mumbai: Google recently entered advanced negotiations to acquire a 22.5-acre land parcel in Juinagar, Navi Mumbai, for approximately 850 crore. This will be Google’s first self-built data centre in India, supplementing its leased eight-story data centre in Navi Mumbai’s MIDC industrial estate. Developed in partnership with EverYondr, the facility is set to open by 2025.

  2. Microsoft and Other Players: Other global giants like Microsoft are also accelerating their investments in India, developing hyperscale data centres to leverage the country’s strategic location and rapidly growing digital economy.

Lodha’s Role in Supporting Amazon

Palava, developed by Lodha Group, is a meticulously planned smart city spanning 4,500 acres. Its advanced infrastructure, sustainable design, and connectivity make it a top choice for businesses like Amazon. Lodha’s focus on infrastructure improvements, such as the Thane-Dombivli Link Road and other connectivity projects, ensures seamless logistics and operational efficiency for companies setting up data centres in the region.

Lodha’s outlook on the Mumbai Metropolitan Region (MMR) emphasizes its potential as a global investment hub, with ongoing infrastructure projects like the Airoli-Katai Naka Freeway and Virar-Alibaug Multimodal Corridor further enhancing accessibility.

MMR: The Next Global Data Centre Hub

The MMR is emerging as a hotspot for data centre investments due to its unique advantages:

  • Strategic Connectivity: Mumbai’s extensive submarine cable networks connect India to major global internet hubs, providing unmatched data transfer capabilities.
  • Infrastructure Boom: Large-scale infrastructure projects in the MMR improve accessibility and create a business-friendly environment for global players.
  • Land Availability: Large land parcels, such as those in Palava and Navi Mumbai, are ideal for hyperscale data centre development, offering scalability and operational convenience.

Conclusion

Amazon's acquisition in Palava is not an isolated development but part of a broader trend where global tech giants are betting on India’s data centre potential. With Amazon, Google, and others making substantial investments, the Mumbai Metropolitan Region is positioning itself as a global hub for digital infrastructure. The combination of strategic land banks, robust connectivity, and supportive infrastructure makes the MMR a key player in the digital economy’s future, both for India and globally.

 
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