Amazon India Pays INR 450 crore to Purchase Lodha's 38-acre Plot in Palava, Close to Mumbai

Nitin Konde, Varun Bhardwaj

Dec 6, 2024 — 3 min read

Amazon India Buys Lodha Land in Palava for INR 450 Crore

For more than INR 450 Cr, Amazon India has purchased a 38.18-acre plot of land in Palava, close to Mumbai, from Lodha Group, a company known as Macrotech Developers, with plans to construct a hyperscale data centre.

According to a media report, the previously approved floor space index, which has a development potential of around 4.16 million square feet, will be made available to Amazon Data Services India, a division of Amazon India.The report also stated that when the sale agreement was executed and registered, Amazon Data Services India paid Macrotech Developers more than INR 396 Cr of the entire agreed sum. Once a few requirements are met, the remaining amount of more than INR 54 Cr will be paid.

Amazon Expanding its Data Centres Globally

According to data analytics firm Propstack, which was quoted in the story, the corporation also paid INR 27 Cr in stamp duty for the deal's November 12 registration. This development coincides with Amazon's plans to build more data centres worldwide. In order to modernise and expand cloud infrastructure in India to match the increasing demand, Amazon Web Services (AWS), the company's cloud division, announced more than a year ago that it will invest $12.7 billion in data centre infrastructure by 2030.

In light of this, in September, AWS was in talks to invest $2 billion in Telangana to increase the state's capacity for data centres. Two data centre infrastructures have been opened by AWS thus far, one in the Hyderabad region and one in the Mumbai region.

Expansion is Aligned with India’s Growing Digital Economy

According to sources, the business has made significant investments to expand its data centres in Saudi Arabia, the UK, Italy, and other nations. The rapid growth of India's digital economy, where the majority of people have access to digital learning platforms, social media, e-commerce, digital transactions, online gaming, and streaming services, is driving up demand for dependable data processing and storage capabilities, which explains the growing interest in data centres.

Global tech companies have made significant investments in data centres, and both Google and Microsoft are interested in purchasing land in India. In addition, the data centre market in India is anticipated to rise steadily at a compound annual growth rate (CAGR) of 5.84%, reaching an estimated $9.27 billion by 2027.

The property registration documents obtained by CRE Matrix show that in November 2024, Equinix India Pvt Ltd, a US-based data centre company, paid INR 155 crore for 5,597 sq m (1.38 acres) of land in the Chandivali neighbourhood of Mumbai. According to the records, the land lot and the building, which has a total built-up area of 5,386 square meters, have been purchased.

In the first half of the year, the nation's overall data centre stock increased by 21%, according to a report by Savills India. With a commanding 54.9% of the total capacity, Mumbai was in first place, followed by Chennai (12.3%), Bengaluru (8.2%), and Pune (7.2%).