Amazon Data Services Pvt Ltd, a subsidiary of Amazon, has made a significant investment in India’s digital infrastructure by acquiring a 38-acre land parcel in Lodha Palava, near Mumbai, for ₹450 crore. The deal, finalized on November 12, 2024, involves the purchase of the land from Macrotech Developers, the company behind the Lodha Group, led by Abhishek Lodha. This new addition will make Amazon’s Real Estate portfolio stronger and expand its cloud service in India
According to documents from Propstack, Amazon paid a stamp duty of ₹27 crore as part of the deal. Of the total ₹450 crore, ₹396 crore was settled at registration, with the remaining ₹54 crore to be paid once certain conditions are met.
Focused on Developing Hyperscale Data Centres
Looking Ahead with Hyperscale Data Centres, located in the Lodha Palava in Dombivli, will be used to build a hyperscale data centre. This acquisition is in line with Amazon’s ongoing strategy to build its cloud data service centre in India. With the increasing demand for cloud services, especially from Amazon Web Services (AWS), the new hyperscale data centre will be instrumental in supporting businesses across the country with scalable and high-performance data storage.
This investment is part of Amazon’s larger vision for India’s digital transformation. "We remain committed to India’s digital and AI transformation as is evident in the billions of dollars we have announced in planned investments into cloud infrastructure in India ($12.7 billion by 2030)," Amazon Web Services said in a statement to HT.com. The $12.7 billion commitment highlights Amazon’s trust in the long-term growth of India’s tech and digital landscape.
Mumbai’s Growing Data Centre Hub
This also boosts Amazon’s standing in Mumbai, which leads India in data centre capacity, with nearly 55% of the country's total. The growing demand for data centres in India, driven by the rise of cloud computing, AI, and e-commerce, makes Mumbai an attractive location for global tech giants. According to industry reports, India’s data centre market is expected to add 791 MW of capacity by 2026, requiring over 10 million square feet of real estate and attracting nearly $5.7 billion in investments.
This isn’t Amazon’s first foray into Mumbai’s expanding data centre landscape. Earlier in 2023, Amazon secured land in Powai, leasing 4 acres from Larsen & Toubro for 18 years, with a commitment of ₹562 crore in rental payments. Another 5.5-acre plot was leased in the same area for ₹921 crore over 21.5 years. These actions reflect Amazon’s commitment to strengthening the infrastructure that will back its services in India.
The Role of Lodha Group and Market Impact
For the Lodha Group, the land sale has been beneficial, with shares rising by 0.56% to ₹1,296.80 during Tuesday’s trading session. This deal is another indicator of the growing demand for real estate in Mumbai’s data centre sector, a market poised for significant growth in the coming years.
With this latest land acquisition, Amazon continues to reinforce its position as a leader in India’s cloud computing market, while contributing to the country’s digital and technological evolution. The new data centre is expected to help Amazon scale its services, cater to the increasing demand for cloud infrastructure, and support businesses across India as they embrace digital transformation.
Amazon’s investment in this hyperscale data centre is a clear signal of the company’s long-term strategy in India, emphasizing the country’s importance in the global digital economy. As India’s digital infrastructure expands, the growing presence of global tech companies like Amazon will play a crucial role in shaping the future of technology in the country.