₹1,200 crore deal: Nvidia leases massive Bengaluru office space amid AI boom

Bengaluru: Nvidia's Indian subsidiary has leased a 7,60,000 sq ft office space in Bengaluru's Bagmane Capital, as global tech giants expand their AI research and development presence in the country.

Nvidia Graphics Pvt Ltd will pay a total rent of around ₹1,230 crore over a 10-year lease tenure. It has leased twelve floors at Memphis South Tower in Bagmane Capital, a tech campus developed by Bagmane Constructions Pvt Ltd.

The lease started on 1 April, as per real estate data analytics platform Propstack. The rental payout also includes a 15% escalation every three years, the lease document showed.

Nvidia Graphics was incorporated in 2004.

“Nvidia’s decision to secure a massive 7.6 lakh sq ft facility in Bangalore is a powerful testament to India’s indispensable role in the global AI ecosystem. Coming on the heels of Nvidia crossing the historic $5 trillion market cap milestone last Friday, this long-term commitment—involving a total rental outflow of approximately ₹1,230 crore over the next decade—highlights the scale at which AI giants are expanding their R&D and engineering footprint in India,” said Raja Seetharaman, co-founder of Propstack.

“This transaction at Bagmane Capital not only underscores the sustained demand for premium Grade-A office spaces but also reinforces Bangalore’s position as the primary destination for high-end technology and semiconductor growth,” Seetharaman added.

An Nvidia spokesperson didn’t respond to Mint’s query. A Bagmane spokesperson declined to comment.

Chipmaking giant Nvidia, the world's most valuable company, has been steadily expanding its office footprint across cities. In Pune, Nvidia Graphics occupies around 3.75 lakh sq ft at Mindspace Business Parks REIT’s Commerzone property. The US technology firm had earlier also secured 73,000 sq ft of office space at The Headquarters 27 in Gurugram, developed by Bharti Realty. Nvidia Graphics also has registered offices in Bengaluru and Mumbai.

India’s office market activity continues to break new ground despite geopolitical and anticipated artificial intelligence (AI)-driven disruption headwinds for the sector, with gross leasing hitting 21.5 million sq ft in the January-March quarter of this year, property advisory JLL India said on Monday.

The country’s largest office market, Bengaluru, led with 24.8% share of the leasing volume, followed by Mumbai with 19.5%. The technology sector emerged as the biggest contributor in office leasing during the same period.

Overall, global-headquartered firms continued to command a lion’s share of the India office leasing landscape, with a 57% share in the January-March quarter, mostly in line with their previous year average.

Current deal pipelines and leasing velocity indicate India’s office market is on track to potentially reach the 100 million sq ft milestone over the next two years, representing a landmark achievement for the sector, JLL India said.